New Delhi: The International Finance Corporation (IFC), the World Bank Group's private-sector arm, has committed USD 50 million to Hygenco Green Energies Private Ltd as part of a wider USD 105 million funding round aimed at expanding green hydrogen production in India, the partners said on Friday.
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The capital was committed through a definitive agreement signed by IFC alongside Siemens Financial Services, the Clean Technology Fund, the Frontier Opportunities Fund and the Fullerton Carbon Action Fund, channelling a combined USD 105 million into the Hygenco green hydrogen platform, according to a joint statement.
IFC is putting in USD 25 million from its own account, Siemens is investing USD 25 million, and Fullerton is committing up to USD 30 million. The package is rounded out by two blended finance facilities that IFC implements to de-risk the platform and draw in private capital: the Clean Technology Fund, a programme of the Climate Investment Funds (CIF), is contributing USD 20 million, while the Frontier Opportunities Fund, backed by the government of Germany, is providing USD 5 million.
Taken together, IFC's USD 50 million commitment comprises its USD 25 million own-account investment plus the USD 25 million it routes through the two facilities, with Siemens and Fullerton accounting for the balance of the USD 105 million total.
The money will flow to the holding company platform to develop multiple green hydrogen projects and scale up the supply of competitive, high-quality green molecules to industrial customers across the country, the statement said. To this end, Hygenco intends to raise further private-sector investment at the asset-company level to produce green hydrogen and its derivatives, including green ammonia.
By building out production capacity and strengthening supply chains, Hygenco aims to deliver zero-emission green molecules to hard-to-abate industrial sectors, a role the company said would support India's National Green Hydrogen Mission and the country's energy transition. The firm also expects to generate more than 1,000 direct jobs over five years, alongside indirect employment across the green hydrogen value chain and the wider industrial ecosystem, according to the statement.
Imad N Fakhoury, Regional Division Director for South Asia at IFC, said the partnership is intended to scale a commercially viable model, pioneer Hydrogen-as-a-Service, and widen the supply of affordable and reliable green hydrogen, while signalling confidence in the sector's long-term growth. He added that the investment reflects the World Bank Group's broader commitment to innovation, sustainable industrial growth and economic opportunity in India.
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"Green hydrogen represents the most tangible and effective pathway toward decarbonizing many hard-to-abate sectors. We are pleased to have new investors place their trust in our vision and operational capabilities to lead this critical industrial transition," Hygenco CEO Amit Bansal said.