India’s state-run Indian Oil Corporation (IOC), engineering and construction major Larsen & Toubro (L&T), and renewable energy player ReNew Power have announced a joint venture (JV) company to develop the nascent green hydrogen sector in India.
The tripartite venture is a synergistic alliance that brings together the strong credentials of L&T in designing, executing, and delivering EPC projects, IndianOil’s established expertise in petroleum refining along with its presence across the energy spectrum, and the expertise of ReNew in offering and developing utility-scale renewable energy solutions.
Additionally, IndianOil and L&T have signed a binding term sheet to form a JV with equity participation to manufacture and sell Electrolyzers used in the production of Green Hydrogen.
SN Subrahmanyan, chief executive officer and managing director of L&T, said the JV would focus on developing the projects in a time-bound manner to supply green hydrogen at an industrial scale.
“While L&T will bring its strong EPC credentials to the table, IOC being India’s premier oil refiner with extensive capabilities in chemical processes and refining has established deep R&D capabilities in many aspects of the green hydrogen value chain. ReNew Power has in a short time established itself as a leading renewable energy supplier and has built itself a very strong reputation,” he said.
Additionally, IndianOil and L&T have signed a binding term sheet to form a JV with equity participation to manufacture and sell electrolyzers used in the production of green hydrogen.
“Both these JVs aim to enable the nation’s ‘Aatmanirbhar Bharat’ mission to rapidly build, expand, and bring in economies of scale to make green hydrogen a cost-effective energy carrier and a chemical feedstock for many sectors,” Subrahmanyan said.
Shrikant Madhav Vaidya, Chairman of IndianOil, said the partnership, to start with, would focus on green hydrogen projects at the company’s Mathura and Panipat refineries. “Alongside, other green hydrogen projects in India will also be evaluated. While the usage of hydrogen in the mobility sector will take its due time, the refineries will be the pivot around which India’s green hydrogen revolution will materialise in a substantial way.
The planned JVs aim to enable India’s transition from a grey hydrogen economy to a greener economy that increasingly manufactures hydrogen via electrolysis powered by renewable energy.
The central government in February notified the Green Hydrogen policy aimed at boosting production of green hydrogen and green ammonia to help the nation become a global hub for the environmentally friendly version of the element.
Mukesh Ambani’s Reliance Industries recently announced setting up a facility to produce green hydrogen. Adani Enterprises also announced a new company — Adani Petrochemicals — to venture into green fuels.
While nearly all hydrogen produced in India today is grey, it is estimated that demand for Hydrogen will be 12 MMT by 2030 and around 40% of the element produced in the country (around 5 MMT) will be green, as per the draft National Hydrogen Mission guidelines.
By 2050, nearly 80% of India’s hydrogen is projected to be ‘green’ – produced by renewable electricity and electrolysis. Green hydrogen may become the most competitive route for hydrogen production by around 2030.