IFC, Siemens, Fullerton may buy 49% stake in clean hydrogen maker Hygenco in $250 million deal

Core Insights - The World Bank's International Finance Corp (IFC), Siemens AG, and Fullerton Fund Management are set to acquire at least 49% of Hygenco Green Energies Pvt. Ltd, a green hydrogen manufacturer based in Gurugram, with an equity value of approximately $125 million and an enterprise value of around $250 million [1][2]. Investment Details - IFC plans to invest $50 million in equity, while Siemens AG and Fullerton Fund Management will contribute the remaining $75 million [2]. - The deal is expected to be announced in mid-December, with documentation currently underway [2]. Company Background - Hygenco's co-founders hold a 51% equity share, with the remaining 49% owned by SBICAP Ventures Limited's SVL-SME Fund [3]. - Hygenco aims to invest $2.5 billion over three years to establish green hydrogen projects in India, targeting the development of 10 gigawatts (GW) of production and distribution assets by 2030 [3]. Green Hydrogen Market - Green hydrogen is produced through the electrolysis of water and can be combined with nitrogen to create ammonia, which is used in energy storage and fertilizer manufacturing [4]. - India aims to produce 5 million tonnes (mt) of green hydrogen by 2030, leveraging its landmass and low solar and wind tariffs for cost-effective production [4][9]. Investor Interest - The growing interest in India's green hydrogen sector is highlighted by various global players, including Masdar, AIIB, Macquarie Group, and others, who have signed non-disclosure agreements regarding the transaction [5]. - Siemens AG has previously made significant investments in India, including the acquisition of C&S Electric Limited for €267 million [8]. Policy and Economic Framework - India's government is implementing a green hydrogen policy with a budget of ₹19,744 crore, aimed at promoting renewable energy and reducing fossil fuel imports by ₹1 trillion by 2030 [12]. - The Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme and production-linked incentive schemes are expected to lower the levelized cost of hydrogen (LCOH) significantly by 2030 [10]. Future Projections - India's green energy capacity is currently around 197 GW, with plans to reach 500 GW by 2030 and 1,800 GW by 2047 [13].