Key Takeaways
- The International Finance Corporation (IFC) is investing USD 50 million in Hygenco Green Energies to promote green hydrogen in India.
- The collective investment from IFC and partners totals USD 105 million to scale green hydrogen projects nationwide.
- The initiative will create over 1,000 direct jobs and support India’s National Green Hydrogen Mission, enhancing industrial decarbonization.
Investment in Green Hydrogen
The International Finance Corporation (IFC), part of the World Bank Group, has committed USD 50 million to Hygenco Green Energies Private Ltd to bolster the development of green hydrogen solutions in India. This investment is part of a larger initiative, with a total of USD 105 million from various investors, including Siemens Financial Services, Clean Technology Fund, Frontier Opportunities Fund, and Fullerton Carbon Action Fund.
The funding will support the development of multiple green hydrogen projects, allowing Hygenco to deliver high-quality green molecules to industrial customers throughout the country. Hygenco plans to mobilize further private sector investments at the asset company level to enhance production capabilities of green hydrogen and green hydrogen derivatives, such as green ammonia.
By reinforcing supply chains and expanding production capabilities, Hygenco aims to supply zero-emission green molecules to challenging industrial sectors, significantly contributing to India’s energy transition and directly backing the National Green Hydrogen Mission.
The initiative is also set to create over 1,000 direct jobs over five years and numerous indirect employment opportunities within the green hydrogen value chain and the broader industrial ecosystem. This partnership aims to establish a commercially viable model, promote Hydrogen-as-a-Service, and expand the availability of affordable green hydrogen solutions, indicating confidence in the sector’s growth potential.
Imad N Fakhoury, Regional Division Director for South Asia at IFC, emphasized that this investment supports India’s burgeoning green hydrogen sector, reflecting the World Bank Group’s commitment to innovation, sustainable growth, and economic opportunities in the nation.
Hygenco CEO Amit Bansal remarked on the significance of green hydrogen as an effective means to decarbonize hard-to-abate sectors, expressing excitement about the trust new investors have placed in Hygenco’s vision and capabilities.
The investment comprises USD 25 million from IFC’s own account, with Siemens also contributing USD 25 million and Fullerton providing up to USD 30 million. Additional backing includes USD 20 million from the Clean Technology Fund and USD 5 million from the Frontier Opportunities Fund, demonstrating a collaborative effort to de-risk the platform and attract further private investments in this vital sector.
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