Larsen & Toubro (L&T) has entered into an agreement with ReNew Power to tap into the emerging green hydrogen business in India. Under this agreement, both companies will jointly develop, own, execute and operate green hydrogen projects in India.
Green hydrogen, produced by splitting water into hydrogen and oxygen in an electrolyser by using renewable-powered electricity, can enable the world to meet its net zero emissions targets. Many countries, including India (through its National Hydrogen Mission), have announced specific policy interventions to push for the widespread adoption of green hydrogen. For countries like India, with its ever-increasing energy import bill, it can also provide energy security by reducing the overall dependence on fossil fuels.
Commenting on the partnership, SN Subrahmanyan, CEO & MD of Larsen & Toubro, said: “This partnership with ReNew is a significant milestone in the journey towards building a green energy portfolio for L&T. We believe that green hydrogen is a promising alternate fuel and an important lever for achieving a cleaner future. L&T is extremely keen to add value in this space beyond the traditional EPC approach and is looking forward to working with ReNew.”
Green hydrogen demand in India for applications such as refineries, fertilisers and city gas grids is estimated to grow up to 2 MMTPA by 2030 in line with the nation’s green hydrogen mission. This would call for investments upwards of $60 billion.
L&T, with its deep expertise and experience in engineering and construction of projects, and ReNew, with its experience in the development of renewable energy projects, are market leaders in their respective sectors and this synergistic partnership is committed to tapping this emerging opportunity. “Green hydrogen will be a key driver of the transition to cleaner sources of energy and this partnership between ReNew and L&T will allow both companies to pool their knowledge, expertise and resources to take maximum advantage of this transition,” ReNew chairman & CEO Sumant Sinha said.