IOC, L&T, ReNew be a part of Hydrogen commercial enterprise.
India’s top oil company IOC, engineering and construction giant Larsen & Toubro and renewable energy company Renew Power on Monday form a joint venture to develop the green hydrogen business.
Joint venture
Indian Oil Corporation (IOC) and L&T have signed a joint venture with Equity Partnership to manufacture and sell electrolyzers used in green hydrogen production.
“The tripartite venture is a cooperative alliance that combines L&T’s strong credentials to design, execute and deliver EPC projects.”
The joint ventures are looking to produce zero-carbon emitting hydrogen, which is used by electrolysis of renewable energy, from refineries to vehicles running from refineries to steel plants.
In February, the government announced a green hydrogen policy aimed at increasing green hydrogen and green ammonia production to help the country become a global hub for the environmentally friendly version.
Join IOC, L&T, ReNew for hydrogen trading
For countries like India, with an ever-increasing oil and gas import bill, green hydrogen can help provide critical energy security by reducing the overall reliance on imported fossil fuels.
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Although almost all hydrogen produced in India today is gray, it is estimated that by 2030 the demand for hydrogen will be 12 million tonnes and nearly 40 percent (about 5 million tonnes) of the country’s production will be green. Draft National Hydrogen Mission Guidelines.
By 2050, about 80 percent of India’s hydrogen is estimated to be ‘green’ – generating renewable electricity and electrolysis. By 2030, green hydrogen could become the most competitive way to produce hydrogen.
This can be driven by potential cost reductions in major manufacturing technologies and clean energy technologies such as solar PV and wind turbines.
“Today, hydrogen is used mainly in the processing, fertilizer sector and steels, which is the focus of JVs’ early efforts,โ the statement said.
To help the Indian industry decarbonize, the new green hydrogen policy provides for a 25-year period to waive inter-state transmission charges and banking provision for 30 days, which will significantly reduce the cost of green hydrogen. This, therefore, pushes the gray hydrogen to replace the green.
Speaking on the joint venture, L&T, CEO and MD SN Subramanian said, “IOC-L & T-ReNew JV will focus on developing green hydrogen projects in a timely manner to meet green hydrogen projects in an industrial scale.”
L&T brings its strong EPC credentials to the table, IOC is India’s premier oil refinery with extensive capabilities in chemical processes and refining, and has established deep R&D capabilities in many aspects of the green hydrogen value chain and Renew Power in the short term. Has established itself as a major renewable energy provider and a very strong reputation for itself.
“We evaluate this partnership to be a remarkable step in India’s pursuit of alternative sources of energy,” he said. ,”Solve another gap in the green hydrogen production chain that focuses on IOC-L&T JV electrolyzer manufacturing and businesses.”
Commenting on the occasion, IOC President Srikanth Madhav Vaidya said, “This partnership will focus on green hydrogen projects in our Mathura and Panipat refineries and other green hydrogen projects in India.”
Hydrogen use in the sphere of mobility takes its rightful time, however, refineries will be the pivot that India’s Green Hydrogen Revolution will execute substantially.
“The partnership formulated today will catalyze the naturalization of India’s energy basket.” Speaking at the launch of Renew Power President and CEO Sumant Sinha, Prime Minister Narendra Modi said ReNew is looking forward to working with L&T and IOC to build a green hydrogen business in India, in line with the government’s broad strategic climate goals of 2030 and 2070. ReNew, as a leader in intelligent energy solutions and with advanced capabilities across renewable energy technologies, is well prepared to meet the capabilities of our partners.
“The timing of these proposed JVs is excellent because they are India Inc,ย the decarbonization of NI will help support the recently announced green hydrogen policy by the Government of India. “
