ReNew, L&T partner for hydrogen business
NEW DELHI: ReNew Power and Larsen & Toubro (L&T) have inked partnership agreement to develop, own, execute and operate green hydrogen projects jointly in India.
S N Subrahmanyan, CEO and MD of L&T said, “This partnership with ReNew is a significant milestone in the journey towards building a green energy portfolio for L&T. It is synergistic and brings together the impeccable track record of L&T in designing, executing, and delivering EPC projects and the expertise of ReNew in developing utility-scale renewable energy projects.”
Green hydrogen is a promising alternate fuel and an important lever for achieving a cleaner future, he said, adding that L&T is keen to add value in this space beyond the traditional EPC approach and is looking forward to working with ReNew.
This partnership will allow both companies to pool their knowledge, expertise and resources to take maximum advantage of this transition, said ReNew’s Chairman and CEO Sumant Sinha.
Green hydrogen is produced by splitting water into hydrogen and oxygen in an electrolyzer by using renewable-powered electricity can enable the world to meet its net zero emissions targets.
Many countries, including India (through its National Hydrogen Mission), have announced specific policy interventions to push for the widespread adoption of green hydrogen.
For countries like India, with their increasing energy import bill, it can also provide energy security by reducing the overall dependence on fossil fuels. It is also expected to provide a green alternative for “hard-to-abate” industries, like refineries, fertilizers, steel and transport, as per a statement.
It is anticipated that green hydrogen demand in India for applications such as refineries, fertilizers and city gas grids will grow up to 2MMTPA by 2030 in line with the nation’s green hydrogen mission. This would call for investments upward of $60 billion, it stated.
In August this year, ReNew Power had said that it plans to invest $1.2 billion to supply round-the-clock 400 megawatt (MW), and has signed the long pending power purchase agreement (PPA) with state-run Solar Energy Corporation of India (Seci) for the same.