KKR-backed Hero Future Energies (HFE) is evaluating a ₹4,000 crore investment in green hydrogen projects in India, including 50 MW of electrolyser capacity and 250 MW of hybrid renewable energy capacity, as the company prepares to expand its clean energy portfolio through FY2030.
Founder and chairman Rahul Munjal disclosed the plans in an interview with Mint, saying the company is assessing industrial applications and downstream products such as green ammonia, with a focus on hard-to-abate sectors including steel, cement and refining.
The proposed investment reflects HFE’s strategy of entering the green hydrogen market early, building experience through initial projects before potentially pursuing larger developments as technology and project economics mature. The capacities cited are under evaluation and should not be interpreted as commissioned or operational assets.
Hero Future Energies Targets Industrial Green Hydrogen Demand
Green hydrogen is produced by splitting water through electrolysis using electricity. When the electricity comes from renewable sources, the process can produce hydrogen with substantially lower lifecycle emissions than conventional hydrogen made from fossil fuels, depending on the electricity supply and production pathway.
HFE is assessing opportunities to supply hydrogen for industrial applications and develop downstream derivatives, including green ammonia. Potential applications include replacing fossil-based hydrogen in refineries and fertiliser production, as well as supporting emissions reduction in industries such as steel and cement.
Munjal told Mint that the company is currently evaluating 50 MW of electrolyser capacity alongside 250 MW of hybrid renewable energy capacity, with an estimated investment of ₹4,000 crore.
The proposed configuration links hydrogen production with renewable power generation. However, the company has not disclosed the proposed project locations, commissioning timelines, expected hydrogen output, renewable electricity arrangements or the allocation of investment between electrolysers and associated renewable energy infrastructure.
Existing Tirupati Project Provides Green Hydrogen Experience
HFE is already developing experience in the sector through projects including a green hydrogen facility at Rockman Industries in Tirupati, Andhra Pradesh. The project was inaugurated by Andhra Pradesh Chief Minister N. Chandrababu Naidu in March 2025, according to the source report.
Munjal said the company is working on two to three green hydrogen projects, including one involving an Indian Institute of Technology. He indicated that experience from these initiatives could help HFE prepare for larger-scale investments as the market develops.
The chairman expects green hydrogen technologies and project economics to mature over the next three to four years. He described the company’s approach as an early-entry strategy intended to build operational knowledge before the market reaches a more established commercial stage.
That outlook remains the company’s assessment rather than a confirmed industry-wide timeline. The pace of green hydrogen deployment will depend on production costs, renewable electricity prices, infrastructure availability, industrial demand and the development of long-term supply contracts.
HFE Expands Focus on Hybrid and Storage-Backed Renewable Power
Alongside green hydrogen, HFE is expanding its portfolio of renewable electricity and energy storage projects. Its global portfolio stands at 7.7 GWp of renewable energy assets and 2.9 GWh of battery energy storage capacity across India, Ukraine, Vietnam and the United Kingdom, including projects that are operating or under development.
The portfolio includes solar, wind, hybrid renewable energy, round-the-clock (RTC) power and firm and dispatchable renewable energy (FDRE) projects. These configurations can combine renewable generation with storage and other resources to deliver electricity more reliably than generation from intermittent sources alone.
Munjal told Mint that a majority of the company’s power offtakers are government-backed entities, including the Solar Energy Corporation of India (SECI), NTPC and NHPC.
In India, approximately 80% of HFE’s current power generation capacity serves utility-scale requirements for distribution companies, while commercial and industrial (C&I) customers account for the remaining 20%, according to the interview.
The company’s expansion plans through FY2030 therefore extend beyond hydrogen production to include renewable electricity systems designed to meet demand for more predictable power supply.
Hero Future Energies Considers Pumped Storage Opportunities
HFE is also considering whether pumped storage projects (PSPs) could become an attractive addition to its portfolio as renewable energy penetration increases and the need for grid flexibility grows.
Pumped storage facilities use surplus electricity to pump water to an elevated reservoir. When electricity demand rises, the stored water is released through turbines to generate power. The technology can provide long-duration energy storage and help balance fluctuations in renewable generation.
Munjal said HFE had examined the technology previously but had focused more heavily on solar projects in recent years, partly because of declining solar module prices. The company has not yet begun active development of pumped storage projects, although it intends to assess opportunities if the economics are favourable.
India has a reported pipeline of 122.77 GW of pumped storage capacity at various stages of development. The Central Electricity Authority has also outlined a roadmap to install an additional 100 GW of capacity by FY2035-36, according to the source report.
These figures refer to development plans and pipeline capacity, not necessarily projects that have reached financial close or entered operation.
Bioenergy Business Analysis
Hero Future Energies’ proposed ₹4,000 crore green hydrogen investment signals an effort to build capabilities in an emerging industrial fuel market while continuing to expand its renewable electricity and storage portfolio. Its approach combines early-stage hydrogen development with a broader strategy focused on hybrid generation, dispatchable power and potential long-duration storage.
The proposed investment should therefore be viewed as part of HFE’s developing strategy rather than evidence that large-scale green hydrogen production has already become commercially competitive. The next milestones to monitor are project approvals, financing, electrolyser procurement, renewable power arrangements and industrial offtake agreements.
For India’s energy transition, HFE’s plans are relevant because they bring together two related challenges: supplying lower-emissions fuels to hard-to-abate industries and delivering reliable renewable electricity at scale. Whether the proposed investment translates into a viable hydrogen business will depend on execution, customer demand and the evolution of project economics over the coming years.
