Coimbatore MSMEs to partner with Japan for green hydrogen technology
The Micro, Small and Medium Enterprises (MSMEs) in Coimbatore district are exploring opportunities in the green hydrogen sector, with plans for collaboration with Japanese companies. The Coimbatore District Small Industries Association has initiated talks with H2 Innovation, a Japanese firm seeking partners in Tamil Nadu for the manufacture and marketing of green hydrogen fuel cells.
P. Ponram, vice-president of the association, told The Hindu that a delegation will visit Japan in October to continue discussions. "Green hydrogen is a promising sector that MSMEs can benefit from as producers and consumers. India already has green hydrogen buses. Hence, the association will see how MSMEs can be involved in this sector," he said.
Green hydrogen, produced using renewable energy, is considered a key component in India's strategy to reduce carbon emissions. The Union government has been promoting its use across industries, including mandates for data centres to be powered by renewable energy. This creates a potential market for fuel cells, which convert hydrogen into electricity without emitting carbon dioxide.
Karunanidhi Kasinathan, founder and chairman of K-KCCS India Private Limited, an Indo-Japan bridge organisation, said the company is facilitating a series of initiatives to promote collaboration between Japanese technology companies, Indian industries, and educational institutions in green hydrogen, renewable energy, and decarbonisation. "We are signing tri-partite Memoranda of Understanding with five educational institutions in Tamil Nadu to promote research in green hydrogen and make it cost competitive for the Indian market," he said.
Japan's high labour and land costs are driving the country to consider technology transfer to expand production of green hydrogen fuel cells quickly. "We are looking for industry partners to manufacture and take to market the green hydrogen fuel cells," Kasinathan added.
Yosuke Mori, Representative Director of H2 Innovation, explained that the capacity of fuel cells can range from 100 kW to 1 MW. "We have done 150 installations in Japan of varying capacity from 500 watts to 50 kW each. We are in discussion with investors in India," he said.
Initially, about 30% of the fuel cell can be manufactured in India, with specialised cylinders imported from Japan. Mori noted that as the manufacturing ecosystem develops in India, the entire cell could be produced locally. The minimum investment required to set up a plant in India is estimated at ₹20 crore to ₹25 crore.
The initial target customers would be those mandated by the Indian government to use green hydrogen. "The Union government is mandating all data centres to be powered by renewable energy. For them, these fuel cells will be an ideal option, and large data centre investors will not mind spending a higher amount to go for clean energy," Mori said. There are plans to hold talks in all southern states for this project.
This initiative aligns with India's National Green Hydrogen Mission, which aims to make the country a global hub for the production, usage, and export of green hydrogen. For MSMEs in Coimbatore, known for their engineering and manufacturing capabilities, entry into this sector could open new avenues for growth and diversification. The association's efforts reflect a broader trend of Indian industries seeking international partnerships to adopt cleaner technologies and meet sustainability goals.
The outcome of the October visit and the progress of the tri-partite MoUs will be crucial in determining how quickly these plans translate into on-ground manufacturing and adoption. The collaboration, if successful, could position Coimbatore's MSME cluster as a key player in India's emerging green hydrogen ecosystem.
