Mumbai/Gurugram: Larsen & Toubro (L&T) and ReNew Power have announced a partnership agreement to tap the emerging green hydrogen business in India. Under this agreement, L&T and ReNew will jointly develop, own, execute and operate green hydrogen projects in India, said an official statement on Thursday. The news comes in the backdrop of the National Hydrogen Mission, under which India is aiming to be a global hub for the production and export of Green Hydrogen.
"We are delighted to be partnering with L&T for the green hydrogen business. 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. I expect this partnership to set new benchmarks in the Indian renewable energy space and took forward to working together with L&T," ReNew's Chairman and CEO Sumant Sinha said in a media statement.
Commenting on this partnership, SN Subrahmanyan, CEO & MD of L&T, said, "This partnership with ReNew is a significant milestone in the journey towards building a green energy portfolio for L&T. It is synergistic and brings together the impeccable track record of L&T in designing, executing, and delivering EPC projects and the expertise of ReNew in developing utility-scale renewable energy projects. 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."
"We are pleased to begin our journey with ReNew. This partnership will strategically place L&T and ReNew in a position to offer green hydrogen solutions to the industry. We are already looking at some interesting opportunities in the Indian market for green hydrogen and we intend to capitalise on them by developing end-to-end competitive solutions. In that effort, we are excited to secure a partnership with ReNew who brings its renewable energy development expertise to the table. Combined with our expertise in the EPC space, I am confident that this partnership will contribute to a sustainable and eco-friendly profitable growth," Subramanian Sarma, whole-time Director and Senior Executive Vice President (Energy), Larsen & Toubro, said.
Green hydrogen produced by splitting water into hydrogen and oxygen in an electrolyzer by using renewable-powered electricity can enable the world to meet its net zero emissions targets. 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. It is also expected to provide a green alternative for "hard-to-abate" industries, like refineries, fertilizers, steel and transport.
It is anticipated that green hydrogen demand in India for applications such as refineries, fertilizers and city gas grids will grow up to 2 MMTPA by 2030 in line with the nation's green hydrogen mission. This would call for investments upward of $60 billion, said the statement.
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