Latest Insights on Green Hydrogen (H2) space in India

Industrial Update – Newsletter – May 2024

IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India

Latest on Green Hydrogen (H2) space in India

While we had covered Green H₂ in our July’22 newsletter, just a quick recap – while H₂ was used mainly in making petroleum products and fertilizer, it was never big as a fuel by itself. Now, with net zero CO₂ emissions as a target, H₂ is seen to play a very important role, especially where renewable energy directly cannot be used. H₂ could be used directly as a fuel in certain industry/processes and in building H₂ fuel cells. While H₂ so far was made using fossil fuels, Green H₂ refers to hydrogen gas that is produced through a process called electrolysis using renewable energy. This process involves splitting water molecules (H₂O) into H₂ and O₂ gas.

India launched its National Green Hydrogen Mission in January 2023 with an overall outlay of Rs. 19,744 crores. India has an ambitious target to achieve a green H₂ production capacity of 5 million tonnes by the end of the year 2030. Currently, the Ministry of New and Renewable Energy (MNRE) has awarded tenders for setting up 412,000 tonnes of green H₂ production capacity and 1500 MW of electrolyzer manufacturing capacity. Some of the key recent announcements include:

•RIL has committed $10 billion over 3 years in new energy – targets to provide affordable green H₂ as a viable alternative to traditional fuels; partnered with Danish company Stiesdal A/S for H₂ electrolysers;

•Tata Projects has partnered with Ohmium, a US-based manufacturer of Proton exchange membrane (PEM) electrolyzers

•ONGC and Greenko inked a pact to spend up to $6.2 billion on renewable energy and green hydrogen projects

•Adani building a 1-MT green H₂ plant (by FY27); to invest another $50 Bn in the next 10 years to increase capacity to 3 MT.

Key Players

Some recent transactions

May’24	Healthium	Acquired by KKR for ~₹7,000 Cr from Apax Partners
May’24	Infra.Market	The B2B E-commerce unicorn raised ₹415 Cr. in a fundraise led by MUFG Innovation partners
May’24	SS Supply Chain Solutions	The logistics SaaS company raised ₹31 Cr. In a fundraise led y GEF Partners
May’24	Niqo Robotics	The Ai powered agricultural robot manufacturer raised ~₹ 110 Cr. In a fundraise led by Fulcrum PE
May’24	Flipkart	Google invested ~₹ 2910 Cr. in the E-commerce platform for a 0.97% stake.
May’24	Shiprocket	The Logi-Tech company raised ₹63.5 Cr. in funding from Bertelsmann India.

Recent News

• Mahindra Group announced plans to invest Rs 37,000 crore in the auto sector over the next 3 years, with a focus on launching 23 new vehicles by 2030; the Adani Group also announced plans to invest $3 bn to expand its global ports capacity over next 3 – 5 years
• As per shipping major Maersk, the Red sea crisis, which has recently intensified, to cause an industry-wide shipping capacity loss of 15-20% during Q2 of this year on routes largely between Asia and Europe
• US imposed heavy tariffs on Chinese imports including batteries, EVs, steel, solar cells and aluminium. This includes 100% tariff on EVs, 50% tariff on semiconductors and 25% tariff on EV batteries from China
• Homegrown SaaS unicorn Zoho announced plans to set up a chip fabrication plant with a proposed investment of US$ 700 million
• India Manufacturing PMI fell to 58.4 in May 2024, slowing from 58.8 in the previous month; a PMI above 50 indicates growth

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