JSW Energy announces progress in green hydrogen space, forays into energy storage services, stock up 1.5%

The firm said it is spearheading the development of the largest commercial-scale green hydrogen project in India which, it claims, is the first in the country to make green steel. The company has initiated the construction activities for its battery energy storage project (BESS) marking its foray into energy storage services. Shares of the company were trading 1.5% higher on Monday

In the green hydrogen space, the company signed a seven-year supply agreement with JSW Steel for 3,800 tons per annum (TPA), along with associated green oxygen. The firm said detailed engineering work and ordering of equipment have been completed with commissioning expected in the fourth quarter of fiscal year 2025 (FY25).

JSW Energy has also been allotted a capacity of 6,800 TPA under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme by SECI. A memorandum of understanding (MoU) has been signed with JSW Steel to supply an additional 85,000 to 90,000 TPA of green hydrogen, along with 720,000 TPA of green oxygen, progressively by 2030.

The company said it has begun the construction of its 1 Gigawatt hours (GWh) BESS project awarded by SECI with commissioning expected by June 2025. The project comprises two installations, each with a 500 MWh storage capacity, designed for two hours of storage in one cycle. The project will be developed under a build own operate and transfer (BOOT) mechanism and will be transferred to the off-taker after 12 years, it said.

Sharad Mahendra, joint managing director and CEO of JSW Energy, said the company is making significant strides in becoming an energy products and services company. “Our Battery Energy Storage System project represents a crucial advancement in enhancing grid stability and integrating renewable energy sources, further solidifying our leadership in innovative energy solutions,” he said.

JSW Energy has a total locked-in generation capacity of 13.3 Gigawatts (GW) comprising 7.3 GW operational, 2.6 GW under construction across the wind, thermal and hydro and a pipeline of 3.4 GW. The company said it aims to reach 20 GW of generation capacity and 40 GWh of energy storage capacity before 2030.

Shares of the company were trading nearly 55% higher on Monday. The stock has risen nearly 147% in the last one year.