Larsen & Toubro (L&T) and ReNew Power on Thursday (2 December) 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.
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.
Through its National Hydrogen Mission, India announced specific policy interventions to push for the widespread adoption of green hydrogen.
For India, with its ever-increasing energy import bill, the adoption of green hydrogen can provide energy security by reducing the overall dependence on fossil fuels. It is also expected to provide a green alternative for energy-intensive industries, like refineries, fertilizers, steel and transport.
According to the official statement of L&T, the green hydrogen demand in India for applications such as refineries, fertilizers and city gas grids will grow up to two Million Metric Tonne Per Annum (MMTPA) by 2030, which would call for investments upward 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,” the company said.