Larsen & Toubro Ltd. and ReNew Power Pvt. have partnered to jointly develop, own, execute and operate green hydrogen projects in India as interest in cleaner fuels rises amid climate concerns.
The partnership will place L&T and ReNew in a position to offer green hydrogen solutions to the industry, according to L&T's media statement. The companies have already started looking at opportunities in the Indian market and intend to capitalise on them by developing end-to-end competitive solutions, it said.
They, however, didn't disclose the operational structure.
Green hydrogen is produced using renewable power without creating carbon emissions—mostly from water. Demand from refineries, fertiliser plants and city gas grids in India for the alternative fuel is expected to grow up to 2 million metric tonnes a year by 2030, requiring an investment upward of $60 billion. The partnership is a step towards providing energy security by reducing dependence on fossil fuels, L&T's statement said, as it will be helpful for countries like India with ever-increasing energy import bill.
They expect at least $2 billion (about Rs 15,000 crore) worth of business opportunities from the green hydrogen segment over the next two years, combined for both the entities, Subramaniam Sarma, whole-time director and senior executive vice president at L&T, said in response to a BloombergQuint query during a conference call. He said it will cost around $1 billion (about Rs 7,500 crore) to set up a 500-megawatt hydrogen plant.
ReNew brings its renewable energy development expertise to the table, while L&T brings its competence in the engineering, procurement and construction, according to the statement. A combination is expected to contribute to sustainable and eco-friendly, profitable growth, it said.
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