Indian Oil Corporation Ltd., Larsen & Toubro (L&T) and ReNew Power signed a binding term sheet to form a Joint Venture (JV) company to develop the nascent green hydrogen sector in India.
The venture will bring together the expertise of L&T in designing, executing, and delivering EPC projects, IndianOil’s established credential 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 electrolysers used in the production of green hydrogen.
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.
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.
Currently, almost all hydrogen produced in India today is grey, where demand for hydrogen is expected to reach 12 million tonnes/year by 2030, out of which around 40% is likely to be green, as per the draft National Hydrogen Mission guidelines. India’s refining sector consumes about 2 million tonnes/year of grey hydrogen, with IndianOil owning one of the largest shares of its refining output.
Mr SN Subrahmanyan, CEO & MD, L&T, said, “We consider this partnership as a significant step in India’s quest for alternative energy.”
Mr Shrikant Madhav Vaidya, Chairman, IndianOil, added, “To start with, this partnership will focus on green hydrogen projects at our Mathura and Panipat refineries. Alongside, other green hydrogen projects in India will also be evaluated.”
Mr Sumant Sinha, Chairman and CEO of ReNew Power, noted, “In alignment with the government’s broader strategic climate goals for 2030 and 2070 set by honourable Prime Minister Narendra Modi, ReNew looks forward to working with L&T and IndianOil to build the green hydrogen business in India.”