IndianOil announced that it has signed binding term sheet with Larsen & Toubro and ReNew to form of a joint venture (JV) company for developing green hydrogen projects in India.
According to the statement, the three companies will hold equal stake in the proposed green hydrogen JV.
This came as a part of the Aatmanirbhar Mission to enable India’s transition from a grey hydrogen economy to a greener one.
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, the company said.
Speaking about the joint venture, SN Subrahmanyan, CEO & MD, L&T, said, “India plans to rapidly march ahead in its decarbonization efforts and production of green hydrogen is key in this endeavor. The IndianOil-L&T-ReNew JV will focus on developing green hydrogen projects in a time-bound manner to supply green hydrogen at an industrial scale {…….}. Addressing another gap in the green hydrogen manufacturing chain, IndianOil-L&T JV will focus on production and sale of electrolyzer.”
“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 added.
Commenting on the occasion, Shrikant Madhav Vaidya, Chairman, IndianOil, said, “Being the Energy of India, we are committed to powering India’s drive towards carbon neutrality by leveraging the power of green hydrogen. IndianOil is forging this alliance to realise India’s green hydrogen aspirations, which is in sync with the Hon’ble Prime Minister’s vision of making India a Green Hydrogen generation and export hub. 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. While the usage of hydrogen in the mobility sector will take its due time, however the refineries will be the pivot around which India’s green hydrogen revolution will materialize in a substantial way.”
For his part, Sumant Sinha, Chairman and CEO of ReNew Power said, “The timing for these proposed JVs is excellent as they will help support Government of India’s recently announced green hydrogen policy to boost India Inc.’s decarbonization journey.”
The company’s statement elaborated that these JVs aim to enable India’s transition from a grey hydrogen economy using renewable energy.
While nearly all hydrogen produced in India today is grey, it is estimated that demand for hydrogen will be 12 million metric tons (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.
India is expected to transform 80% of its hydrogen into green hydrogen produced by renewable electricity and electrolysis by 2050.
