Coimbatore MSMEs to Partner with Japan on Green Hydrogen Initiatives

Micro, Small, and Medium Enterprises (MSMEs) in Coimbatore are set to explore opportunities in the green hydrogen sector through collaborations with Japanese firms. P. Ponram, Vice-President of the Coimbatore District Small Industries Association, revealed that discussions have already begun with Japan-based H2 Innovation, which is seeking partners in Tamil Nadu for the manufacturing and marketing of green hydrogen fuel cells. A delegation from the association is scheduled to visit Japan in October to advance these talks.

A Growing Opportunity in Green Energy

Green hydrogen, touted as a clean and sustainable energy source, presents significant potential for MSMEs in India. Ponram highlighted that India already operates green hydrogen-powered buses, suggesting that local industries could play a dual role as producers and consumers in this emerging sector.

Karunanidhi Kasinathan, founder and chairman of K-KCCS India Private Limited, emphasized the importance of fostering collaboration between Japanese technology companies, Indian industries, and educational institutions. He disclosed plans to sign tri-partite Memoranda of Understanding with five Tamil Nadu-based educational institutions to promote research in green hydrogen. The goal is to make the technology cost-competitive for the Indian market.

Japan Eyes Technology Transfer

Japan, facing high labour and land costs, is keen to expand its production of green hydrogen fuel cells through technology transfer. Yosuke Mori, Representative Director of H2 Innovation, stated that the company has already completed 150 installations in Japan, with capacities ranging from 500 watts to 50 KW. In India, the initial production model would involve manufacturing 30% of the fuel cell components locally, while specialized cylinders would be imported from Japan. Over time, as the manufacturing ecosystem develops, the entire fuel cell could be produced domestically.

The investment required to establish a green hydrogen fuel cell plant in India is estimated at ₹20 crore to ₹25 crore. The initial focus will be on customers mandated by the Indian government to adopt green hydrogen, such as data centers, which are required to transition to renewable energy sources. Large data center operators, who are often willing to invest in clean energy solutions, are expected to be key clients.

Regional Expansion Plans

To further the initiative, H2 Innovation plans to hold discussions across southern states to identify potential industry partners and investors. This regional approach aims to accelerate the adoption of green hydrogen technology in India, aligning with the government’s push for renewable energy and decarbonization.

This collaboration marks a significant step for Coimbatore’s MSMEs, offering them a chance to enter a high-growth sector while contributing to India’s broader clean energy goals.

Source: The Hindu