L&T and ReNew to jointly develop, operate green hydrogen projects in India

Engineering conglomerate Larsen & Toubro (L&T) and Goldman Sachs-backed renewable energy company ReNew Power on Thursday announced a partnership agreement to jointly develop, own, execute and operate green hydrogen projects in India.

The partnership between L&T and the renewable energy company is the latest big-ticket entry into the green hydrogen production space in India.

Commenting on this partnership, S N Subrahmanyan, CEO and MD of L&T, said: “This partnership with ReNew is a significant milestone in the journey towards building a green energy portfolio for L&T. It is synergistic and brings together the impeccable track record of L&T in designing, executing, and delivering EPC projects and the expertise of ReNew in developing utility-scale renewable energy projects.”

Subrahmanyan said green hydrogen is a promising alternate fuel and an important lever for achieving a cleaner future.

Explained: The hydrogen economy and how India plans to steer it

“Green hydrogen will be a key driver of the transition to cleaner sources of energy and this partnership between ReNew and L&T, will allow both companies to pool their knowledge, expertise and resources to take maximum advantage of this transition. I expect this partnership to set new benchmarks in the Indian renewable energy space and look forward to working together with L&T,” said ReNew Chairman & CEO Sumant Sinha in a statement.

This partnership will place L&T and ReNew in a position to offer green hydrogen solutions to the industry, said Subramanian Sarma, Whole-time Director & Sr. Executive Vice President (Energy) at L&T.

“We are already looking at some interesting opportunities in the Indian market for green hydrogen and we intend to capitalize on them by developing end-to-end competitive solutions.”

Green hydrogen can enable the world to meet its net zero emissions targets, L&T and ReNew said in the joint statement. Many countries, including India (through its National Hydrogen Mission), have announced specific policy interventions to push for the adoption of green hydrogen.

For countries like India, with its ever-increasing energy import bill, it can also provide energy security by reducing the overall dependence on fossil fuels.

According to the statement, green hydrogen can also provide a green alternative for industries like refineries, fertilizers, steel and transport.

This would call for investments of more than $60 billion, it said.