IREDA CMD Urges Innovative Financing for Cost-Effective Green Hydrogen
Pradip Kumar Das, CMD of IREDA, stressed the need for innovative financing to make green hydrogen projects more cost-effective and bankable. Speaking at the 2nd International Conference on Green Hydrogen, he outlined IREDA's efforts and proposed holistic solutions.
September 13, 2024. By EI News Network
Speaking on the topic "Financing Green Hydrogen: Bridging the Cost Gap" Das underscored IREDA’s commitment to driving down project costs and aligning green hydrogen with established renewable technologies such as solar, wind, and hydro.
Das noted that IREDA has already taken significant steps in this direction by financing its first green ammonia project and planning to offer foreign-currency loans for export-oriented developers through its subsidiary at GIFT City, Gujarat. These loans aim to save developers 250-350 basis points on hedging costs, making green hydrogen more attractive in global markets. Recently, the International Financial Services Centre Authority (IFSCA) granted provisional registration to IREDA Global Green Energy Finance IFSC Limited, a wholly-owned subsidiary, as a finance company at GIFT City.
He also spoke about IREDA's efforts to develop an in-house, standardised credit appraisal model that would better capture the risks associated with green hydrogen projects and reflect these risks in interest rates. This approach is expected to reduce costs and enhance the overall bankability of green hydrogen ventures. Das called for comprehensive measures, including the establishment of robust testing facilities for electrolyser manufacturers, the creation of central agencies to evaluate plant designs, and the implementation of standardised offtake agreements to mitigate risks and ensure long-term sustainability.
The panel discussion also featured notable industry leaders and experts, including V K Dewangan, CMD of REC; Ranjit Gupta, CEO of Ocior; Tarun Shankar from the International Finance Corporation; Nishaanth Balashanmugam of the Green Hydrogen Organisation amongst others.
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