MSMEs in Coimbatore to explore green hydrogen sector

The Micro, Small and Medium-scale industries (MSMEs) in the Coimbatore district are exploring potential partnerships in the green hydrogen sector, with the support of Japanese collaboration opportunities. P. Ponram, vice-president of the Coimbatore District Small Industries Association, revealed that the association has been in discussions with H2 Innovation, a Japanese company seeking partners in Tamil Nadu for the manufacture and marketing of green hydrogen fuel cells.

The Green hydrogen technology is a promising opportunity for MSMEs, both as producers and consumers, as it is already being implemented in India through green hydrogen buses.

Karunanidhi Kasinathan, founder and chairman of K-KCCS India Private Limited, stated that KCCS, in collaboration with H2 Innovation Co. Ltd. from Japan, is facilitating a series of initiatives to strengthen collaboration between Japanese technology companies, Indian industries, and educational institutions. The primary focus of these initiatives is on green hydrogen, renewable energy, and decarbonisation.

KCCS is signing tripartite Memorandums of Understanding with five educational institutions in Tamil Nadu to promote research in green hydrogen and make it cost-competitive for the Indian market.

Japan is interested in technology transfer to quickly increase the production of green hydrogen fuel cells due to its high labor and land costs. They are looking for industry partners to help manufacture and market green hydrogen fuel cells. Yosuke Mori, Representative Director of H2 Innovation, explained that the capacity of these fuel cells ranges from 100 KW to 1 MW.

They have installed fuel cells in Japan with capacities varying from 500 watts to 50 KW each. H2 Innovation is in conversation with Indian investors, and initially, about 30% of the fuel cell can be produced in India, with special cylinders coming from Japan. As the manufacturing ecosystem develops in India, the entire cell can be produced locally.

The minimum investment required to set up a plant in India will be ₹20 crore to ₹25 crore. The Union government is mandating that all data centers be powered by renewable energy, making green hydrogen fuel cells an ideal option for large data center investors. These fuel cells will be targeted towards customers who are mandated to use green hydrogen by the Indian government. Talks to explore this project are planned in all southern states.