INTERVIEW: Hygenco eyes more renewable hydrogen projects, export push after equity raise

Hygenco Green Energies plans to build more renewable hydrogen plants and accelerate development of its export-oriented renewable ammonia project in India, following a recent equity raise, a senior company executive told Platts, part of S&P Global Energy, July 21.

The renewable energy developer has been an early mover with two operational renewable hydrogen plants for domestic industrial use and a 1.1 million mt/year renewable ammonia project in Gopalpur, Odisha, where phase one will be commissioned in 2030.

"With our recent equity investment, we will look at growing both domestic distributed green hydrogen plants across India and expedite development of the Gopalpur Green Ammonia plant," said Harish Jayaram, vice president of business development at Hygenco.

The Odisha project is targeting exports of RFNBO-compliant renewable ammonia to Europe and Far East Asia. For renewable hydrogen, the company is in "active discussions" with "existing and new customers to set up new plants/add capacity."

Hygenco signed definitive agreements for $105 million in equity investment from International Finance Corp., Siemens Financial Services and Fullerton Carbon Action Fund to expand renewable hydrogen/ammonia production, the company said last month.

Hygenco also conducted a study in collaboration with Mitsubishi Heavy Industries on the feasibility of exporting renewable ammonia from India to Japan and Singapore, supporting decarbonization, Jayaram said.

Four new projects

Jayaram said market opportunities are emerging across India, including new applications that require renewable hydrogen, and Hygenco was preparing to step up its presence in the domestic market.

"We are developing four additional green hydrogen projects in India for industrial customers," Jayaram said. "These will be commissioned within 18 months in multiple states, including Andhra Pradesh, Maharashtra and Telangana."

"Key learnings include patience in building capabilities and operationalizing plants across the country, modular design, supply chain diversification, and continuous learning from the integration of the gas plant with renewable energy sources," he added.

Hygenco commissioned its first commercial renewable hydrogen plant in Hisar, Haryana, in partnership with Jindal Stainless in 2024. The following year, it started a renewable hydrogen facility in Maharashtra to supply to optical fiber manufacturer Sterlite Technologies.

With India's national carbon market expected to begin operations in late 2026 or early 2027, and emissions caps set on plants across nine sectors, including iron and steel, cement and textiles, the industry is expected to step up adoption of clean fuels.

Cost escalation challenge

According to Jayaram, despite cost inflation and supply chain disruptions stemming from the prolonged conflict in the Middle East, concerns over energy security, supply diversification, and supportive policies are expected to boost renewable hydrogen.

"Impact is highly positive with end customers now more keen to diversify their supply sources to ensure energy security and to have better control over the supply chain," he said. "India definitely stands to benefit as a dependable source of supply."

Jayaram said the commodity cost escalation is temporary and "will start to moderate in due course," as was generally believed in the clean fuels industry.

India's renewable hydrogen industry is in the spotlight after a string of government-led auctions for subsidy disbursement for renewable hydrogen, renewable ammonia and electrolyzers with projected low production costs.

The Solar Energy Corp of India auctions were executed in rupees, so the impact of its depreciation against the Dollar is not applicable, according to Jayaram.

However, imported equipment -- stacks, compressors, storage -- if contracted in dollars or euros, can hurt due to the currency depreciation, he said.

Platts assessed the India Renewable Hydrogen Term Contract at $3.22/kg (weekly assessment), down 2.4% from a month ago.

Policy push

"Make in India and Production Linked Incentive (PLI) schemes will encourage localization and minimize import dependence," Jayaram said, referring to the backward integration drive to build renewable energy components, including electrolyzers.

"The ministry is actively seeking inputs from the industry to extend opportunities to localize beyond the existing schemes/PLI."

The Ministry of New and Renewable Energy is implementing the PLI Scheme for the National Programme on High Efficiency Solar PV Modules, for achieving manufacturing capacity of gigawatt scale in high efficiency solar PV modules with an outlay of Rupees 240 billion ($2.49 billion), it said on its website.

Hygenco partnered with technology provider Topsoe as the licensor for its Odisha renewable ammonia plant in 2024. It also said in 2024 that it had signed a term sheet for renewable ammonia with Swiss trader Ameropa.