UK-based global investor Actis is negotiating an investment in Indian hydrogen company Hygenco Green Energies, two sources familiar told Infralogic.

Actis made an offer to invest in Hygenco, which is seeking to raise about USD 200m from an equity investor, the sources said, without disclosing further details of the former’s offer.

Avendus Capital is advising Hygenco on the fundraise, as reported earlier.

Actis, Hygenco and Avendus did not respond to requests for comment.

The UK fund manager has been active in Indian renewables via solar, wind, and batteries through its platforms and is currently building a portfolio via greenfield projects and acquisitions through Blupine, its third in India. However, it has not made an investment in green hydrogen production in India so far, although it was studying the area carefully, it told local media in 2022.

Set up in 2020 by CEO Amit Bansal and co-founders Anshul Gupta and Aashish Gupta, Hygenco develops green hydrogen and green ammonia on a commercial scale. It plans to build-own-operate multiple facilities across India.

The company started seeking an investment earlier this year and has signed more than a dozen non-disclosure agreements with potential investors. These include Macquarie, Abu Dhabi Future Energy Company (Masdar), Malaysia’s Gentari, Marubeni, Mitsubishi Heavy Industries and Sojitz Corporation.

Hygenco wants to work with companies in sectors with a high carbon replacement cost, including steel, refining and commercial transportation, as well as those that support India’s Green Hydrogen Mission – a plan to have the capacity to produce 5 million tonnes of green hydrogen by 2030, Hygenco said previously.

In November 2022, Hygenco received a USD 25.3m commitment from climate and sustainability investor Neev Fund II, to build green hydrogen development facilities over two to three years. It said at the time that it intends to invest more than USD 300m in the next three years.

Neev Fund II – managed by SBICAP Ventures – is backed by the State Bank of India, the European Investment Bank, the UK and India Development Cooperation Fund, Small Industries Development Bank of India, Japan International Cooperation Agency and Self Reliant India Fund.

In 2022, Hygenco also signed a long-term green hydrogen offtake agreement with Jindal Stainless to build, own and operate a multi-megawatt green hydrogen facility for 20 years.

In October 2023, the hydrogen company signed a long-term offtake agreement with optical and digital solutions company Sterlite Technologies. Hygenco will construct and operate a plant in Maharashtra state and supply green hydrogen and green oxygen to Sterlite.