Indian Oil Corporation Ltd., Larsen & Toubro Ltd and ReNew Power Pvt Ltd. have signed binding terms for the establishment of a joint venture (JV) company to develop India’s nascent green hydrogen sector.
The three companies will have an equal share in the proposed green hydrogen joint venture.
“The tripartite company is a synergistic alliance that brings together L&T’s strong credentials in designing, executing and delivering EPC projects, Indian Oil’s established expertise in petroleum refining and its presence across the energy spectrum, and the expertise of ReNew in providing and developing utility-scale renewable energy solutions,” the companies said in a joint statement.
In addition, Indian Oil and L&T have signed a binding term sheet to form an equity joint venture to manufacture and sell electrolysers used in green hydrogen production.
SN Subrahmanyan, CEO & MD, L&T, said: “India plans to make rapid progress in its decarbonisation efforts and green hydrogen production is key in this endeavor. The Indian Oil-L&T-ReNew JV will focus on developing green hydrogen projects in a time-bound manner to deliver green hydrogen on an industrial scale.”
“We view this collaboration as an important step in India’s search for alternative energy. To address another gap in the green hydrogen production chain, Indian Oil-L&T JV will focus on the production and sales of Electrolyser,” he added.
Shrikant Madhav Vaidya, Chairman of Indian Oil, said: “Indian Oil is forging this alliance to realize India’s green hydrogen ambitions, which is in line with the Prime Minister’s vision to make India a green hydrogen production and export hub.”
“To begin with, this partnership will focus on green hydrogen projects at our Mathura and Panipat refineries. In addition, other green hydrogen projects in India will also be evaluated. While the use of hydrogen in the mobility sector will take time, the refineries will be the hub around which India’s green hydrogen revolution will manifest itself in a substantial way,” he said.
Sumant Sinha, Chairman and CEO of ReNew Power, said: “ReNew, as a leader in intelligent energy solutions and with advanced capabilities in renewable energy technologies, is well prepared to complement the capabilities of our partners,” he said.
“The timing for these proposed joint ventures is excellent as they will help the Government of India support its recently announced green hydrogen policy to drive India Inc.’s low-carbon journey,” he added.
The planned joint ventures aim to facilitate India’s transition from a gray hydrogen economy to a greener economy that increasingly produces hydrogen through electrolysis powered by renewable energy.