Hygenco Green Energies intends to allocate $2.5 billion for the establishment of Green Hydrogen projects spanning several states in India within a three-year timeframe. This initiative will leverage the prospects in the rapidly evolving domestic market for environmentally friendly fuel.
Hygenco stands as a dedicated Green Hydrogen platform, predominantly engaged in the Build-Own-Operate (BOO) business model. The company’s advantage lies in its specialized proficiency encompassing the design, engineering, and technology facets of Green Hydrogen production. Hygenco has developed and executed strategies to lower the production costs of both green hydrogen and ammonia.
The corporation is presently manufacturing Green Hydrogen at two facilities, comprising an R&D-cum-demonstration facility with a capacity of 140 KW located in Ujjain, Madhya Pradesh. Simultaneously, a second plant equipped with around 3 MW renewable energy capacity is on the verge of completing its commissioning phase in Hisar, Haryana. Furthermore, the company is in the process of constructing two additional plants in Maharashtra as part of Phase-I, with a combined capacity of 15 MW.
The company is currently engaged in the development of projects ranging from 50 to 200 megawatts in scale. They are actively pursuing initiatives across seven states, catering to customers in industries such as refineries, steel manufacturing, fertilizers, and others with challenging-to-address emissions in their production processes.
Anshul Gupta, Co-founder & Chief of Strategy & Innovations at Hygenco, stated that they have upcoming projects with secured land, and active orders and development or construction activities are currently in progress. Over the next three years, they anticipate making a total capital expenditure investment of approximately $2.5 billion in India.
Hygenco emerged victorious in the recent Production Linked Incentive (PLI) scheme for the production of Green Hydrogen under the SIGHT program initiated by the government. The company secured a PLI for a 75 KTPA capacity, necessitating the installation of approximately 2 GW of Renewable Energy (RE) capacity within the next three years. Gupta mentioned that, from a capital expenditure perspective, the company is currently evaluating a project pipeline in India exceeding $10 billion.
The Gurgaon-based company recently completed its initial funding round, securing close to $25 million from the Neev II Fund. Since then, it has experienced growth in both project portfolios and team size. Consequently, Hygenco is embarking on a new fundraising round, seeking capital to support its activities and investments over the next 2-3 years.
“We are actively seeking partners who share our vision of Green Hydrogen as a crucial element in the global energy transition. India, being a pivotal market for us, requires like-minded collaborators who recognize the significance of a specialized platform in advancing Green Hydrogen. Considering the evolving nature of the sector, we have a preference for partners with a long-term and patient capital approach,” expressed Gupta.
“Hence, we are capitalizing on our proficiency to advance Green Ammonia production initiatives intended for both international and domestic markets. Several of these projects focusing on Green Ammonia are currently progressing well in their development stages”, said Gupta in his statement.
Last year, the company entered into a contractual arrangement with Al Jomaih Energy and Water to establish Green Hydrogen projects in the Middle East. According to Gupta, Hygenco is currently attracting attention from international markets seeking collaboration for the development of projects abroad.
“We find great enthusiasm in the prospect of Saudi Arabia as a pivotal focal point, considering its evolving economy and its position bridging the East and West along the Red Sea route. As a result, we express keen interest in collaborating with our local partner to cultivate a forthcoming portfolio of projects,” Gupta remarked.
