A) Introduction of GreenZo India?

GreenZo has established itself as a significant player in the renewable energy sector, charting a remarkable journey marked by significant milestones. The company’s evolution showcases its commitment to sustainable energy solutions and its expertise in harnessing various renewable energy sources.

Here is a brief overview of GreenZo's journey:

2020: Consultancy of Hydropower

GreenZo commenced its journey by offering consultancy services for hydropower projects. This initial step laid the foundation for the company’s expertise in renewable energy consultancy, focusing on harnessing water resources to generate clean energy.

2021: Commissioning Nepal’s First Solar Project

In 2021, GreenZo achieved a significant milestone by commissioning Nepal’s first solar project with a capacity of 12.25 MW. This project marked the company’s foray into solar energy, demonstrating its capability to execute large-scale renewable energy projects and contribute to the region’s energy sustainability.

2022: Expansion in Solar Energy Consultancy

The following year, GreenZo expanded its portfolio by installing various solar projects and providing consultancy services for renewable energy projects exceeding 200 MW. This expansion underscored GreenZo’s growing influence and expertise in the solar energy sector, positioning the company as a key player in the renewable energy market.

2022: Electrolyser Manufacturing Plant

GreenZo diversified its technological capabilities by starting up an electrolyser manufacturing plant. This venture highlighted the company’s commitment to advancing hydrogen production technologies, essential for the hydrogen economy and the transition to sustainable energy sources.

2023: Green Hydrogen Projects

In 2023, GreenZo embarked on green hydrogen projects, leveraging its expertise in hydrogen production to contribute to the global shift towards green hydrogen. These projects are crucial for reducing carbon emissions and promoting the use of hydrogen as a clean energy source.

B) Services Offered by GreenZo India

1. Manufacturing of Electrolyzers and its BOP

Electrolysis is a promising option for carbon-free hydrogen production from renewable and nuclear resources. Electrolysis is the process of using electricity to split water into hydrogen and oxygen.

This reaction takes place in a unit called an electrolyzer. Electrolyzers can range in size from small, appliance-size equipment that is well-suited for small-scale distributed hydrogen production to large-scale, central production facilities that could be tied directly to renewable or other non-greenhouse-gas-emitting forms of electricity production.

Greenzo is a technology company that promotes, develops, finances, designs, integrates, builds, operates and maintains hydrogen production systems based on water electrolysis, providing complete solutions for generation, compression, storage, commercialization, refilling stations and all other uses of green hydrogen.

Greenzo Energy has finalised the land for manufacturing electrolyzers for Hydrogen production in Gujarat. The production has not yet started though.

Location : Sanand
Groundbreaking : 24 Oct

Phase-1

Investment : 100 cr
Capacity : 250 MW

Services Offered by GreenZo India in Electrolyser

• Proprietary technology for the development of PEM electrolyzers, aiming to be one of the few across the globe to hold MW stacks.
• Not only manufacturing electrolyzers, but also providing solutions tailored to customers’ needs.
• Obtaining permits and licences for large projects and plants, as well as search for finance and project finance.
• Development of hydrogen production plants that use electrolyzers to several thousand kg/day.
• Plant operation and maintenance, and local support for management of the same.
• Guaranteeing the daily hydrogen production, in terms of quality and quantity, of its plants.
• Integration with renewable energy production plants, optimization of hydrogen compression and storage solutions, or incorporation of methanation equipment, between others.

2. Greenzo provides end-to-end solar, wind, and hydropower energy services, including designing the system, giving procurement details about the system, and installing it.

3. GreenZo provides comprehensive consultancy services for Green Hydrogen and Ammonia Plants. The consultancy includes thorough demand-supply assessments of hydrogen and ammonia for any state or country, including neighbouring regions. Expertise extends to evaluating the existing infrastructure for exporting green hydrogen and ammonia, as well as the necessary raw materials.

Survey reports offer detailed insights into the feasibility of developing the required infrastructure, including storage tanks, pipelines, distribution depots, and port facilities. GreenZo also assesses the potential for exports to other countries through detailed desktop studies, indicating how much green hydrogen and green ammonia can replace their conventional uses.

4. Providing Energy Solutions through Fuel Cell Technology

C) Projects Completed by GreenZo Energy

1. API Power Company Limited 4 MW AC/ 4.8 MW DC
2. Eco Power Development Company -Dhalkebar-12.25 MW
3. API Power -Dhalkebar Phase –II
4. Chandranigahapur- 5MW
5. Dhalkebar Phase I– 1.25 MW

D) Understanding of Terms like Green Hydrogen, Ammonia, Electrolyser, and Fuel Cell.

1. Green Hydrogen: Definition:

Green hydrogen is hydrogen produced using renewable energy sources, such as wind, solar, or hydropower, through a process called electrolysis. This method is environmentally friendly because it does not produce greenhouse gases.

Production Process:

Electrolysis: The process involves using electricity to split water (H2O) into hydrogen (H2) and oxygen (O2). When the electricity used comes from renewable sources, the hydrogen produced is termed "green hydrogen."

Sustainability: Green hydrogen is seen as a key component in the transition to a sustainable energy system, as it can be used in various applications without emitting CO2.

Applications:

Energy Storage: It can store excess renewable energy for use when production is low.

Transportation: Used as a clean fuel for vehicles, particularly in fuel cells.

Industrial Processes: Used in industries like steel production and ammonia synthesis, reducing carbon emissions.

2. Ammonia:

Definition: 

Ammonia (NH3) is a compound of nitrogen and hydrogen. It is a colourless gas with a pungent odor and is commonly used in fertilisers, industrial processes, and as a potential energy carrier.

Production and Uses:

• Traditional Production: Currently, ammonia is mainly produced via the Haber-Bosch process, which combines nitrogen from the air with hydrogen (usually from natural gas) under high pressure and temperature.
• Green Ammonia: When produced using green hydrogen, ammonia can serve as a carbon-free fuel and energy storage medium.
• Fertilizers: A significant portion of ammonia is used in agriculture as a fertilizer due to its high nitrogen content.
• Energy Carrier: Ammonia can be used to transport hydrogen more efficiently and can be burned directly in power plants or used in fuel cells.

3. Electrolyser:

Definition: An electrolyser is a device that uses electricity to split water into hydrogen and oxygen. It is central to the production of green hydrogen.

Types of Electrolysers:

• Alkaline Electrolysers: Use a liquid alkaline electrolyte solution (e.g., potassium hydroxide).
• Proton Exchange Membrane (PEM) Electrolysers: Use a solid polymer electrolyte and operate at a higher current density, offering more flexibility with renewable energy sources.
• Solid Oxide Electrolysers: Operate at high temperatures and have higher efficiency but are still under development for large-scale use.

Function and Importance:

• Hydrogen Production: Key technology for producing green hydrogen from renewable energy sources.
• Decarbonization: Plays a crucial role in reducing carbon emissions across various sectors by enabling clean hydrogen production.

4. Fuel Cell

Definition: A fuel cell is a device that converts the chemical energy of a fuel (typically hydrogen) and an oxidizing agent (usually oxygen) into electricity through a chemical reaction.

Types of Fuel Cells:

• Proton Exchange Membrane (PEM) Fuel Cells: Commonly used in vehicles; they operate at relatively low temperatures and have quick start-up times.
• Solid Oxide Fuel Cells (SOFC): Operate at high temperatures and are used for stationary power generation.
• Alkaline Fuel Cells: Used in space applications and some specialized industries.

Operation and Applications:

• Electricity Generation: Produce electricity through an electrochemical reaction, with water and heat as by-products, making them environmentally friendly.
• Transportation: Used in fuel cell electric vehicles (FCEVs) as an alternative to battery electric vehicles (BEVs) and internal combustion engines.
• Backup Power: Employed in backup power systems for critical infrastructure due to their reliability and efficiency.

Benefits:

• Efficiency: Fuel cells are more efficient than internal combustion engines and have a lower environmental impact.
• Versatility: Can be used in a variety of applications, from small portable devices to large-scale power plants.

E) Management of The Company:

• Mr. Sandeep Agarwal, M-TECH, Founder & President, is a visionary leader in the field of sustainable energy solutions, dedicated to advancing green technologies and fostering innovation in renewable energy.
  
  
• Mr. Raj Kumar Agarwal, Ex AGM-NTPC, Senior Vice President, brings extensive experience and expertise in power generation and energy management, driving strategic initiatives for sustainable growth and operational excellence.

F) Valuation of The Company

No. of Equity Shares: 1,18,52,331 as on ( 31.05.2024)

CMP: Rs. 750

Market Cap: 885 Cr.

Forward Projected PAT (FY 25): 42.94 Cr

Forward P/E Ratio: 20x 

G) Projection of the Company ( in Cr)

Note: Above Projection are taken from Valuation Report done by Independent Valuer.

H) Conclusion

Greenzo, founded in 2021, is at the nascent stage of its journey in the Green Hydrogen market. Initially, the company has successfully executed several Solar EPC projects and is now expanding its expertise to include electrolyser technology for generating Green Hydrogen. With a manufacturing unit established in October 2023, operations are yet to commence. Additionally, Greenzo offers consultancy services for setting up Green Hydrogen and Ammonia plants. The company recently raised funds, bringing its market capitalization to approximately INR 418 Cr as of February 2024.

The Green Hydrogen market is in its early stages, akin to the solar industry in 2010, and is expected to undergo significant technological advancements. Currently, producing Green Hydrogen via electrolysis is not economically viable without achieving substantial scale. Major players, including Reliance, are also entering the market, with plans to set up electrolyser manufacturing plants in Gujarat.

Given the market's nascent stage and the anticipated technological shifts, the risks are considerable. However, Greenzo's proactive approach and strategic initiatives position it to capitalize on future opportunities in this evolving market.