Larsen & Toubro (L&T) and ReNew Power has signed an agreement to tap $2 billion green hydrogen business opportunities in two years in India and the neighbouring countries, S N Subrahmanyan, CEO and MD of Larsen & Toubro said.
Under this agreement, L&T and ReNew will jointly develop, own, execute and operate green hydrogen projects in India and adjoining nations. “The partnership brings together the track record of L&T in designing, executing, and delivering EPC projects and the expertise of ReNew in developing utility-scale renewable energy projects,” Subrahmanyan said.
The 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 Power chairman and CEO Sumant Sinha said.
The companies are already exploring opportunities in the Indian market for green hydrogen, Subramanian Sarma, whole-time director and senior executive vice president (energy), Larsen & Toubro said.
Green hydrogen is produced by splitting water into hydrogen and oxygen in electrolyser by using renewable-powered electricity. India has announced the National Hydrogen Mission to push green hydrogen.
It is anticipated that green hydrogen demand in India for applications such as oil, refineries, steel and fertiliser units and city gas grids will grow up to 2 million metric tonnes per annum by 2030 in line with the nation’s green hydrogen mission. This would call for investments upward of $60 billion, a joint statement said.
Sinha said a number of opportunities are coming up in green hydrogen and the partnership will not be constrained by capital availability. He said the partnership will put together a special entity for each opportunity and put in a bid based on the combined strength of the companies.
The partnership dynamics will vary depending on the clients and will be worked out on a case-to-case basis, Subrahmanyan said. L&T will separately be also pursuing other aspects of green hydrogen like electrolyzers and grid stationary batteries, he said.
