Larsen & Toubro (L&T) is teaming up with Norway’s HydrogenPro to make gigawatt-scale green hydrogen electrolysers in India.
The companies announced on Thursday that they have signed a Memorandum of Understanding, enabling a partnership aimed at tapping the Indian market.
They will work towards setting up a joint venture for gigawatt-scale manufacturing of alkaline water electrolysers, based on HydrogenPro technology, for the Indian market and other select geographies.
L&T said the proposed joint venture “is in line with its strategic vision to be present across the green energy value chain and HydrogenPro’s strategy of establishing a global manufacturing footprint”.
India has ambitious plans for energy transition. It is targeting 175 gigawatts of renewables by 2022 and 500 GW by 2030.
L&T noted that the nation is well suited for green hydrogen production due to the low generation costs of renewable electricity from abundant solar and wind power sources.
“The country aims to be among the world’s largest green hydrogen hubs and has a plan for using the same across the sectors,” the Indian engineering giant added.
Green hydrogen demand in India is expected to reach 2 million tonnes per annum by 2030, in line with its Green Hydrogen Mission, which would call for investments upward of $60 billion, L&T said.
Chief executive SN Subrahmanyan said the energy industry “is undergoing a tectonic shift, with green hydrogen emerging as a key fuel in the future energy basket”.
The joint venture “will be a win-win partnership”, he said, given L&T’s extensive relationship across the energy industry, deep engineering, procurement and construction experience in this sector and successful collaborations with many multinational companies, and HydrogenPro’s “focus to stay ahead of the curve as far as technology leadership is concerned”.
Prime Minister Narendra Modi has called for India to become a global hub for green hydrogen production and exports.