Overview
Green hydrogen — produced by splitting water using renewable electricity, with only water vapour and heat as by-products — is the critical link between intermittent renewable generation and industrial decarbonisation. REC 2 is currently developing a green hydrogen project in Gujarat, with production designed to be integrated with on-site solar generation and battery energy storage. We are in active discussions to finalise implementing partners and offtakers, with the project planned for phased rollout rather than a single big-bang launch.
We do not manufacture our own electrolysers today, so we are building this vertical the honest way: through partnership. REC 2 is in discussions with FCTecNrgy Pvt. Ltd. (FCT) — a Gurgaon-based manufacturer and, through its joint venture with Germany's SFC Energy AG, India's first company to commercialise hydrogen and methanol fuel cells at scale, with over 3,000 deployments across defence, oil & gas and disaster management. Two pathways are under evaluation with FCT: supplying hydrogen fuel-cell backup power to replace diesel gensets at data centres, and entering the electrolyser OEM/technology-supply market — manufacturing or supplying the core hardware of the green hydrogen economy rather than only trading in it.
India's hydrogen landscape is being built by three forces at once: the National Green Hydrogen Mission (₹19,744 crore through FY 2029-30, targeting 5 MMTPA of green hydrogen and ~125 GW of renewable capacity by 2030), the SIGHT production and electrolyser-manufacturing incentive scheme (₹17,490 crore), and a wave of private capital from Reliance, Adani, JSW, ACME, Avaada and ReNew. As of early 2026 the pipeline spans MoU-stage announcements, projects under active construction, and a smaller set that are commissioned and producing today — commissioned green hydrogen capacity nationally stands at roughly 8,000 TPA against the 2030 target, so most of the sector's value creation still sits ahead of us, not behind it.
The scale being committed nationally is real: Reliance's Jamnagar giga complex is targeting 3 MTPA of green hydrogen by 2032, NTPC's Pudimadaka hub represents a ₹1.85 lakh crore (~$22bn) single-site commitment, and Adani-TotalEnergies have committed $50bn over a decade at Mundra/Kutch. JSW's Vijayanagar plant, commissioned November 2025 to feed its DRI steelmaking process, is the first project formally delivered under the SIGHT scheme — a template for how REC 2 expects its own offtake-anchored hydrogen projects to be structured. State policy adds a further layer: the Uttar Pradesh Green Hydrogen Policy 2024 offers up to ₹50 crore in capital subsidy for electrolyser-OEM workstreams and a 10-year exemption on electricity duty and transmission charges for green data-centre power — precisely the two pathways REC 2 is evaluating with FCT. The H₂ Festival, conceived by REC 2, brings together hydrogen technology companies, investors and regulators in an annual showcase event, and we leverage our sports investment arm to position hydrogen-powered racing as a live demonstration platform for the technology at scale.
Why REC 2 is Investing Here
Fuel cells convert hydrogen directly into electricity at 40-60% efficiency (up to 60%+ for PEM systems) with zero emissions beyond water vapour — a real efficiency and emissions edge over combustion that REC 2's Gujarat project and FCT partnership are built to capture, not merely claim.
Partnering with an operationally proven manufacturer like FCT — 3,000+ fuel-cell deployments already in the field, not a lab concept — lets REC 2 move to bankable pilots faster while staying honest about what is ours and what is a partnership.
With commissioned Indian green hydrogen capacity at only ~8,000 TPA against a 5 MMTPA 2030 target, and India's data-centre capacity alone set to triple to 4 GW by 2030, the addressable market for hydrogen backup power and electrolyser supply is still almost entirely unclaimed.
Team