Larsen & Toubro (L&T), an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing, and Services, has entered into an Electrolyzer Manufacturing Binding Agreement with McPhy Energy, a leading electrolyzer technology and manufacturing company based in France, for a long-term partnership to explore the opportunities emerging in the emerging Green Hydrogen market.
McPhy will grant L&T an exclusive licence of its pressurised alkaline electrolyzer technology for the manufacture of electrolyzers, including future product upgrades, as part of this collaboration. L&T intends to build a Gigawatt-scale manufacturing facility for electrolyzers based on McPhy technology in India, serving both domestic and international markets.
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), 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".
“McPhy wants to be a global leader in the manufacture of electrolyzers. Joining forces with a major partner like Larsen & Toubro to address new markets is a great opportunity for McPhy and evidence of the attractiveness of its technology." said Mr. Jean-Baptiste Lucas, CEO of McPhy.
“We are looking forward to an exciting journey where this partnership of L&T and McPhy will play a key role in creating a sustainable energy infrastructure for the future.
The hydrogen industry is in its infancy, but it has enormous potential, and through this collaboration, both organisations will leverage their inherent strengths to establish cost leadership through local manufacturing and sourcing "Mr. Derek M Shah, Sr. Vice President & Head, L&T Energy - Green Manufacturing & Development, explained.
Because of the low generation costs of renewable electricity from abundantly available solar PV and wind power sources, India is well suited for Green Hydrogen production. The country aspires to be one of the world's largest Green Hydrogen hubs, with big plans to use it across industries. It can also provide India with energy security by lowering the country's ever-increasing oil import bill while paving the way for green alternatives for "hard-to-abate" issues "Refineries, fertilisers, steel, and transportation are examples of industries.
Green hydrogen production capacity in India is expected to increase to at least 5 MMTPA by 2030, in accordance with the country's Green Hydrogen Mission, which would require investments in excess of $100 billion.