STL Inks Deal with Hygenco for Green Hydrogen Supply

STL Inks Deal with Hygenco for Green Hydrogen Supply

VoM News Desk | October 12, 2023 | 11:45 PM IST | Breaking News | Follow on Google News

STL Inks Deal with Hygenco for Green Hydrogen Supply

STL Inks Deal with Hygenco for Green Hydrogen Supply

Shares of Sterlite Technologies Ltd (STL) witnessed a notable surge of more than three percent on Thursday, October 12, following the company’s partnership with private green hydrogen solutions provider ‘Hygenco’ for the supply of green hydrogen to its manufacturing facilities. After the announcement of this collaboration, the optical and digital solutions provider’s shares gained 3.49 percent during the trading session.

A Pioneering Green Hydrogen Project

Sterlite Technologies, in a regulatory filing to the stock exchanges, revealed its collaboration with Hygenco, a homegrown green hydrogen solutions provider, in a long-term offtake agreement. Under this agreement, Hygenco will design, construct, and operate the green hydrogen facility for STL over a span of 20 years.

The hydrogen facility is set to be powered by renewable energy sources and commissioned within the next 15-18 months, according to STL. Notably, this initiative represents the first green hydrogen project within India’s optical industry, marking a significant milestone.

STL is renowned for its expertise in materials science, photonics, and precision engineering, and it has established a semiconductor-grade glass preform plant in Aurangabad, Maharashtra. This Industry 4.0-powered facility is dedicated to manufacturing glass preforms, which play a crucial role in the production of world-class optical fibers.

Aim for Carbon Abatement and Enhanced Efficiency

Hydrogen and oxygen are essential elements in optical fiber production, serving as fuel in blast furnaces for converting silica particles into glass. In the optical fiber value chain, hydrogen and oxygen are often considered challenging areas for decarbonization.

Through their green hydrogen partnership, STL and Hygenco aim to achieve carbon abatement of 30 percent year on year, contributing to sustainability goals. Previously, STL relied on electrolysers running on conventional energy, but the installation of renewable energy-based electrolysers by Hygenco will allow STL to in-source its hydrogen supply. This move will also reduce occupational health hazards associated with procuring hydrogen in cylinders.

Moreover, equipped with autonomous energy management and control, the system will enable continuous monitoring and real-time decision-making, ensuring optimal efficiency.

On Thursday, STL shares opened at ₹157.50 and surged 3.49 percent, reaching an intraday high of ₹163.15 apiece before settling at ₹162.05 apiece, marking a 2.92 percent increase on the BSE.

VoM News Desk

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