Indian Oil, L&T, ReNew Power to form green hydrogen JV

Indian Oil Corporation Ltd., Larsen & Toubro Ltd, and ReNew Power Pvt Ltd. have signed a binding term sheet for the formation of a Joint Venture (JV) company to develop the nascent green hydrogen sector in India.

The three companies will hold equal stake in proposed green hydrogen JV.

“The tripartite venture is a synergistic alliance that brings together the strong credentials of L&T in designing, executing, and delivering EPC projects, Indian Oil’s established expertise in petroleum refining along with its presence across the energy spectrum, and the expertise of ReNew in offering and developing utility-scale renewable energy solutions,” the companies said in a joint statement.

Additionally, Indian Oil and L&T have signed a binding term sheet to form a JV with equity participation to manufacture and sell Electrolysers used in the production of green hydrogen.

S.N. Subrahmanyan, CEO & MD, L&T, said, “India plans to rapidly march ahead in its decarbonisation efforts and production of green hydrogen is key in this endeavour. The Indian Oil-L&T-ReNew JV will focus on developing green hydrogen projects in a time-bound manner to supply green hydrogen at an industrial scale.”

“We consider this partnership as a significant step in India’s quest for alternative energy. Addressing another gap in the green hydrogen manufacturing chain, Indian Oil-L&T JV will focus on production and sale of Electrolyser,” he added.

Shrikant Madhav Vaidya, Chairman, Indian Oil, said, “Indian Oil is forging this alliance to realise India’s green hydrogen aspirations, which is in sync with Prime Minister’s vision of making India a green hydrogen generation and export hub.”

“To start with, this partnership will focus on green hydrogen projects at our Mathura and Panipat refineries. Alongside, other green hydrogen projects in India will also be evaluated. While the usage of hydrogen in the mobility sector will take its due time, however the refineries will be the pivot around which India’s green hydrogen revolution will materialise in a substantial way,” he said.

Sumant Sinha, Chairman and CEO of ReNew Power, said,“ ReNew, as a leader in intelligent energy solutions and with advanced capability across renewable energy technologies, is well poised to complement the capabilities of our partners,” he said.

“The timing for these proposed JVs is excellent as they will help support the government of India’s recently announced green hydrogen policy to boost India Inc.’s decarbonisation journey,” he added.

The planned 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.