REC commits $280 million to Hygenco's green ammonia project in Odisha

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Green hydrogen producer Hygenco said on September 17 that it has entered an agreement with REC Limited for financing Hygenco’s Green Ammonia Project in Gopalpur, Odisha. The state-backed power sector lender will provide upto $280 million for the project.

"Under the MoU, REC will fund upto $280 million for the project, even as Hygenco is planning to invest about US$2.5 billion years towards its green hydrogen and green ammonia projects across India in the next few years," Hygenco said.

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. One of their significant achievements is "Project Steel One", which is India’s first commercial-scale green hydrogen plant.

"We are committed to energy security and aligning with the Indian government's vision of Aatmanirbhar Bharat. Our projects will help reduce carbon emissions and pave the way for a sustainable future," said Amit Bansal, Co-Founder and CEO of Hygenco.

In July, Moneycontrol had reported that Hygenco is in talks with global investors for a potential stake sale, the proceeds of which would be used to fund the clean tech firm's future expansion plans.

The Haryana-based company is looking to raise about $400 million by the end of this year. However, it has not disclosed the percentage of stake that would be sold out to investors.