In a bid to enable India’s decarbonization push, Indian Oil Corporation Ltd., (IndianOil), Larsen & Toubro (L&T), and ReNew Power (“ReNew”), announced signing of a binding term sheet for the formation of a Joint Venture (JV) company to develop the nascent green hydrogen sector in India.
The tripartite venture is a synergistic alliance that brings together the strong credentials of L&T in designing, executing, and delivering EPC projects, IndianOil's established expertise 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 Electrolyzers used in the production of Green Hydrogen.
Commenting on the occasion, Shrikant Madhav Vaidya, Chairman, Indian Oil, said, "Being the Energy of India, we are committed to powering India’s drive towards carbon neutrality by leveraging the power of green hydrogen.
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 endeavour. 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.”
He added that 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.
Sumant Sinha, Chairman and CEO of ReNew Power said, "The timing for these proposed JVs is excellent as they will help support the Government of India’s recently announced green hydrogen policy to boost India Inc.'s decarbonization journey.”
The central government in February notified the Green Hydrogen policy aimed at boosting the production of green hydrogen and green ammonia to help the nation become a global hub for the environmentally friendly version of the element.
By 2050, nearly 80% of India’s hydrogen is projected to be ‘green’ — produced by renewable electricity and electrolysis. Green hydrogen may become the most competitive route for hydrogen production by around 2030. This may be driven by potential cost declines in key production technologies and in clean energy technologies such as solar PV and wind turbines.
