Indian MNC Larsen & Toubro (L&T) has entered into an electrolyzer manufacturing binding agreement with French tech firm McPhy Energy for a long-term partnership to explore the opportunities unfolding in the emerging green hydrogen market.
As per the agreement, McPhy will grant an exclusive license of its pressurized alkaline electrolyzer technology to L&T for manufacturing of electrolyzers, including future product upgrades.
L&T has revealed its plan to set up a GW-scale manufacturing facility for electrolyzers based on McPhy technology in India to serve the domestic requirements as well as cater to the other selected geographies.
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, it claims.
Commenting on the occasion, 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".
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The company opines that India is well suited for green hydrogen production due to the low generation costs of renewable electricity from abundantly available solar PV and wind power sources. The country aims to be among the world's largest green hydrogen hubs and has grand plans for using the same across the sectors.
Further, green hydrogen can also provide India the energy security by reducing the ever-increasing oil import bill while charting a pathway to green alternatives for "hard-to-abate" industries like refineries, fertilisers, steel, and transport, L&T adds.
"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.
Green Hydrogen production capacity in India is estimated to grow to at least 5 MMTPA by 2030 in line with the nation's Green Hydrogen Mission, which would call for investments upward of USD 100 billion.
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