The EPC major on Wednesday announced that it has entered into an electrolyzer manufacturing binding agreement with France-based McPhy Energy for a long-term partnership to explore the opportunities unfolding in the emerging green hydrogen market.
Under this partnership, McPhy will grant an exclusive license of its pressurised alkaline electrolyzer technology to L&T for manufacturing of electrolyzers, including future product upgrades.
L&T plans to set up a gigawatt-scale manufacturing facility for electrolyzers based on McPhy technology in India to serve the domestic requirements as well as cater to the other selected geographies.
The proposed agreement is in line with L&T's strategic vision to be present across the green energy value chain and also furthers McPhy's aim to expand beyond the European market.
Subramanian Sarma, whole time director (Energy) of 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 agreement with McPhy which will be a win-win partnership given L&T's strong presence across the entire value chain of manufacturing, EPC and services in the energy sector, and McPhy's technology and research leadership in this sector.
Derek M Shah, senior vice president & head of L&T Energy - Green Manufacturing & Development, stated, The Green Hydrogen industry is at a nascent stage with an immense potential, and through this partnership both organizations will harness their inherent strengths to establish cost leadership through local manufacturing and sourcing.
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. Green Hydrogen production capacity in India is estimated to grow to at least 5 million metric tonnes per annum (MMTPA) by 2030 in line with the nation's Green Hydrogen Mission, which would call for investments upward of $100 billion.
Larsen & Toubro (L&T) is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services. It operates in over 50 countries worldwide.
The company posted a consolidated net profit of Rs 2,553 crore in Q3 FY23, registering a growth of 24% from Rs 2,055 crore recorded in Q3 FY22. Net sales rose 17.3% year on year to Rs 46,389.72 crore in Q3 FY23.
Shares of Larsen & Toubro rose 0.84% to Rs 2,232.15 on the BSE.
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