Larsen & Toubro (L&T) said that it has entered a memorandum of understanding (MoU) with HydrogenPro AS for manufacturing hydrogen electrolysers in India in order to tap the emerging green hydrogen market.
HydrogenPro AS is a Norway-based leading Electrolyser technology and manufacturing company.
Under this agreement, L&T and Hydrogen Pro will jointly work towards setting up of a joint venture in India for gigawatt-scale manufacturing of alkaline water electrolysers based on HydrogenPro technology for Indian market and other select geographies.
The proposed joint venture in India is in line with L&T's strategic vision to be present across the green energy value chain and HydrogenPro's strategy of establishing a global manufacturing footprint to maintain cost leadership and ensure local presence.
S N Subrahmanyan, CEO & MD, L&T said, "The energy industry is undergoing a tectonic shift with green hydrogen emerging as a key fuel in the future energy basket. We are delighted to have signed this MoU with HydrogenPro. This will be a win-win partnership given our extensive relationship across the energy industry, deep EPC experience in this sector and successful ongoing collaborations with many MNCs and HydrogenPro's focus to stay ahead of the curve as far as technology leadership is concerned."
India has made the world's largest expansion plan for renewable energy transition, with a target of 175GW of renewables by 2022 and 500 GW by 2030.
India is well suited for green hydrogen production due to the low generation costs of renewable electricity from abundantly available solar PV and wind power sources. The country aims to be among the world's largest green hydrogen hubs and has plan for using the same across the sectors. It can also provide India the energy security by reducing the ever-increasing energy import bill and a pathway to green alternative for "hard-to-abate" industries, like refineries, fertilisers, steel, and transport.
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Green Hydrogen demand in India is estimated to grow up to 2 MMTPA by 2030 in line with the nation's Green Hydrogen Mission, which would call for investments upward of $60 billion.
L&T is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services.
The company's consolidated net profit fell 67% to Rs 1,819.45 crore on 12% increase in net sales to Rs 34,772.90 crore in Q2 FY22 over Q2 FY21.
The scrip shed 0.31% to currently trade at Rs 1918.65 on the BSE.
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