Neev II Fund-backed Hygenco plans to raise over $100 million by September to support its spending plans as the clean tech firm aims at more projects across sectors. Earlier this month, the Haryana-based company, in partnership with Jindal Stainless, set up the country's first green hydrogen plant.
The capital raised would be earmarked for setting up green hydrogen projects and to commercialise its pipeline. The company had raised its first round of funds in 2022 from Neev II Fund of close to $25 million.
"We are in the middle of raising the second round... We are out to raise slightly more than $400 million of commitment. However, it will not all happen in one single bucket. We are engaged with investors, trying to break it down into buckets of, let's say, 100 million plus. We are fairly confident that at least one bucket we can raise before September," said Anshul Gupta, co-founder and chief of strategy and innovations.
Hygenco develops and deploys commercial green hydrogen and ammonia production systems. Its applications are used in large-scale process industries, terrestrial and marine transport, and personal mobility. The company touts itself as 'commercially viable'.
Green hydrogen is produced using the electrolysis route with renewable energy. The method is expected to be one of the dominant routes for low-carbon hydrogen production, according to a report from Alvarez and Marsal released last month.
The Hisar plant of Jindal Stainless has a potential to produce up to 250 tonnes per year while targeting an initial production of 75 tonnes a year and would target to reduce the CO2 emissions by 2,700 tonnes. Hygenco aims to develop 10 Gigawatt (GW) of “commercially attractive” production and distribution assets by 2030.
"I can comfortably say that almost every single steel maker in the country is currently working with Hygenco," Gupta said.
Investments in the green hydrogen
Amid needs to decarbonise operations in the carbon-intensive steel and auto sectors, it is imperative that India’s hydrogen sector garners substantial support — an estimated $4–12 billion until 2030, according to a report from Alvarez and Marsal. However, since the green hydrogen space is still at a nascent stage, investors are evaluating the space before committing.
According to global financial advisory firm Rothschild and Co, Middle Eastern investors are closely looking at the Indian clean energy space for potential investment opportunities.
"We are engaged with Middle East investors as well, but I think this market is slightly new... I think they are all learning, educating about it," Gupta said, adding that this is the perfect opportunity for the sovereign wealth funds in the Middle East.
"Given these kind of targets, you need a lot of capital. We are seeing Middle East capital actively evaluate investments in the Indian clean energy space. UAE-based companies and funds are evaluating, people from Qatar are also looking at investments in the space," Rothschild Managing Director Aalok Shah told Moneycontrol.
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