IndianOil, L&T, ReNew have teamed up for green hydrogen business
IOC, L&T and Renew Power have formed a joint venture (JV) to manufacture and sell electrolyzers used in the production of green hydrogen
On Monday, Indian Oil Corp. (IOC), Larsen & Toubro (L&T), and ReNew Power announced the signing of a formal term sheet for the creation of a joint venture (JV) company to mark their entry into India’s emerging green hydrogen industry.
To produce and distribute electrolyzers used in green hydrogen generation, IOC and L&T have also signed a binding term agreement to create a JV with equity participation, according to the official press release.
“The tripartite JV will concentrate on creating initiatives to deliver green hydrogen on an industrial scale in a time-bound way… “We see this collaboration as an important step forward in India’s drive for alternative energy,” said S N Subrahmanyan, chief executive officer and managing director of L&T.
He went on to say that both of these JVs aim to help the Aatma Nirbhar Bharat mission and to quickly establish, expand, and bring in economies of scale towards making green hydrogen a cost-effective energy carrier and chemical feedstock for a variety of industries.
“This collaboration will focus on green hydrogen projects at our Mathura and Panipat refineries,” stated Shrikant Madhav Vaidya, Chairman of IOC.
“Other green hydrogen initiatives in India will also be evaluated. While the use of hydrogen in the mobility sector will take its due time, as of now the refineries will be the pivot around which India’s green hydrogen revolution will materialise in a significant way,” he added further.
“The timing for these planned JVs is good since they would assist in supporting the government’s newly announced green hydrogen strategy to promote the decarbonisation journey of India Inc’s,” stated Sumant Sinha, Chairman and CEO of ReNew Power.
The proposed JVs would help India shift from a grey hydrogen economy to a greener economy that will progressively create hydrogen through electrolysis driven by renewable energy, added the joint press release.
The joint press release further added that by 2050, approximately 80% of India’s hydrogen is expected to be ‘green’ – created using renewable power and electrolysis. Green hydrogen might become the most cost-effective method of producing hydrogen by 2030. This might be influenced by possible cost reductions in major hydrogen producing technologies as well as renewable energy technologies such as solar PV and wind turbines.
According to the joint press release, as of today, mostly hydrogen is used in the refining, steel, and fertiliser industries. These sectors will be the initial focus of the JVs’ activities. The country’s refining sector utilises around 2 MMT of grey hydrogen every year, with IOC having one of the major share of its refining output.
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