International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, on Friday committed $50 million to Hygenco Green Energies Private Ltd to support the development of green hydrogen projects in India, as per media reports.
IFC, along with Siemens Financial Services, Clean Technology Fund, Frontier Opportunities Fund and Fullerton Carbon Action Fund, has signed a definitive agreement for a collective investment of $105 million into Hygenco’s green hydrogen platform.
Funding To Support Green Hydrogen Scale-Up
According to a joint statement, the proposed funding to the holding company platform will support the development of multiple commercially viable green hydrogen projects and help scale the supply of competitive, seamless and high-quality green molecules to industrial customers across India.
Hygenco aims to mobilise additional private sector investments at the asset company level for the production of green hydrogen and green hydrogen derivatives, including green ammonia.
The company said expanding production capabilities and strengthening supply chains would help deliver zero-emission green molecules to hard-to-abate industrial sectors, supporting India’s energy transition and the National Green Hydrogen Mission.
Over 1,000 Direct Jobs Expected Over Five Years
According to the statement, the company expects to create more than 1,000 direct jobs over the next five years, while also generating indirect employment opportunities across the green hydrogen value chain and the wider industrial ecosystem.
Commenting on the development, Imad N. Fakhoury, Regional Division Director for South Asia at IFC, said the partnership aims to scale a commercially viable model, pioneer Hydrogen-as-a-Service, and expand affordable and reliable green hydrogen solutions while signalling confidence in the sector’s long-term growth potential.
Amit Bansal, CEO of Hygenco, said green hydrogen represents an effective pathway to decarbonise hard-to-abate sectors and welcomed investor confidence in the company’s vision and execution capabilities.
Under the funding arrangement, IFC will invest $25 million from its own account, Siemens Financial Services will invest $25 million, and Fullerton Carbon Action Fund will invest up to $30 million.
The investment is complemented by blended finance facilities implemented by IFC, with the Clean Technology Fund investing $20 million and the Frontier Opportunities Fund, supported by the German government, contributing $5 million to help de-risk the platform and attract private investment.
