IPO-bound Apollo Green Energy is in talks with international players for green hydrogen technology to expand its renewable portfolio given its target to achieve a Rs 10,000 crore project pipeline this year, Chief Executive Officer Sanjay Gupta told Moneycontrol in an exclusive interview. Apollo Green, which provides engineering, procurement and construction (EPC) services, is looking to go public by the second half of 2025.
Although India is actively looking to develop the technology indigenously as part of its clean energy transition, companies are currently relying on foreign partners for various aspects of green hydrogen production, such as electrolysers and fuel cells, which are critical to the green hydrogen value chain. Previously, companies like Reliance Industries and Larsen & Toubro had announced technology partnerships for manufacturing electrolysers.
"We're focusing on getting the right technology and maybe we'll get it manufactured by somebody else. Also, my teams are working on identifying projects. Rs 10,000 crore is a large portfolio target, so green hydrogen would definitely comprise a part of it," Gupta added.
He did not specify the names of the technology partners, but mentioned that the projects could potentially kick off this year. "We are in discussion with two large technology providers who are keen to enter India, so we would be the channel partner to offer their solution to Indian companies," Gupta explained, adding that Apollo will be solely focussing on the EPC side of developing the green hydrogen facility.
Green hydrogen (GH2 or GH2) is hydrogen produced by the electrolysis of water, using renewable electricity. It is considered a promising alternative to fossil fuels.
Renewable ambitions
Within 14 months of its strategic pivot towards renewable projects, Apollo bagged three solar deals awarded by state-run hydropower company NHPC worth Rs 3,500 crore. The company is executing a 40 MW fixed tilt solar project in Odisha, a 50 MW a floating solar project (first of its kind) in Kerala, and a 200 MW solar project with tracker technology in Gujarat. It is also executing a project in Bihar for 1,50,000 smart solar street lights.
"Going forward, AGEL will also expand its footprint in wind, hybrid, green hydrogen, and battery storage solutions," Gupta added.
Operating in eight states, the company manages a diverse portfolio of projects, including 400 MW of solar installations. The company has been involved in the execution of flue gas desulphurisation (FGD) systems to reduce sulphur dioxide emissions, a major contributor to pollution, in power generation. However, it has now decided to break away from conventional EPC projects, and aims to have up to 80 percent solar projects.
Of the Rs 10,000 crore portfolio, the company aims to allocate 90 percent towards renewable energy projects, with the remaining 10 percent focused on conventional EPC, which includes water and electrical distribution projects, etc.
"We have a clear deployment plan and want to give value to our investors. We have a growth strategy in place so that they are able to reap the rewards of partnering with us," Gupta said.
The company is targeting a topline of Rs 1,100 crore in FY 25, with plans to go public by Diwali.
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