Green energy producer ReNew Power, and engineering conglomerate Larsen & Toubro have announced that they will jointly own, develop, execute and operate green hydrogen projects.
“Under this agreement, L&T and ReNew will jointly develop, own, execute and operate green hydrogen projects in India,” said a joint statement issued by both companies.
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.
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. It is also expected to provide a green alternative for 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 million tonnes per annum (MTPA) by 2030 in line with the nation’s green hydrogen mission. This 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.
S.N. 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.”
He further added L&T is extremely keen to add value in this space beyond the traditional EPC approach and is looking forward to working with ReNew. ReNew’s chairman and CEO Sumant Sinha said that green hydrogen will be a key driver of the transition to cleaner sources of energy and the partnership 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 look forward to working together with L&T,” Sinha added.