IndianOil, L&T, ReNew Power to form JV for green hydrogen development

Initial focus of the JV will be the sectors where hydrogen is mainly used.

Refiner and fuel retailer Indian Oil Corporation Ltd., engineering and construction conglomerate Larsen & Toubro (L&T), and renewable energy firm ReNew Power (ReNew) will be forming a joint venture (JV) to develop India’s green hydrogen sector.

IndiaOil and L&T also signed a binding term sheet for the formation of another JV with equity participation to manufacture and sell electrolysers that are used in the production of green hydrogen.

In a statement, ReNew Power said the the JVs aim “to enable India's transition from a grey hydrogen economy to a greener economy that increasingly manufactures hydrogen via electrolysis powered by renewable energy.”

ReNew Power said the JVs’ initial efforts will be focused on refining, steel, and fertilizer sectors where hydrogen is mainly used currently.

L&T CEO and Managing Director SN Subrahmanyan said green hydrogen is key in India’s plan to accelerate decarbonisation.

“The IndianOil-L&T-ReNew JV will focus on developing Green Hydrogen projects in a time-bound manner to supply Green Hydrogen at an industrial scale,” he said.

Meanwhile, IndianOil Chairman Shrikant Madhav Vaidya said the partnership will focus on green hydrogen projects at their Mathura and Panipat refineries, whilst other green hydrogen projects in the county will also be evaluated alongside.

ReNew Power Chairman and CEO Sumant Sinha said that the company is “well-poised to complement the capabilities of our partners,” adding that the JVs are aligned with the government’s strategic climate goals for 2030 and 2070.

Nearly all hydrogen produced in India is grey and it is estimated that demand for hydrogen will reach 12 million metric tons (MMT) by 2030, with around 40% of the production will be green, citing the draft National Hydrogen Mission guidelines. It added that by 2050, nearly 80% of India's hydrogen is projected to be “green” or produced via renewable electricity and electrolysis.

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