Larsen & Toubro (L&T), Indian multinational EPC solutions major, is venturing into electrolyzer production in India in partnership with HydrogenPro AS, a Norway-based alkaline electrolyzer specialist that aims for the green hydrogen production cost of US$ 1.2 per kg in 2022.
The company today announced it has entered a Memorandum of Understanding (MoU) with HydrogenPro as it looks to tap the emerging green hydrogen market.
Under this agreement, L&T and HydrogenPro will set up a joint venture in India for gigawatt-scale manufacturing of alkaline water electrolyzers based on HydrogenPro technology. The gigafab will serve the Indian market and also supply to other select geographies.
The proposed joint venture in India is in line with L& T’s strategic vision to be present across the green energy value chain and HydrogenPro’s strategy of establishing a global manufacturing footprint to maintain cost leadership and ensure local presence, read an L&T statement.
SN Subrahmanyan, chief executive officer and managing director, L&T said, “The energy industry is undergoing a tectonic shift with Green Hydrogen emerging as a key fuel in the future energy basket…This will be a win-win partnership given our extensive relationship across the energy industry, deep EPC experience in this sector, and successful ongoing collaborations with many MNCs and HydrogenPro’s focus to stay ahead of the curve as far as technology leadership is concerned”.
“We’re extremely pleased to enter this Memorandum of Understanding with L&T, an E&C powerhouse which is the perfect partner to establish HydrogenPro in the Indian market, a huge and growing energy market with tremendous potential for hydrogen-based solutions,” said Elling Nygaard, CEO of HydrogenPro.
“We are looking forward to this exciting journey and making this partnership work for creating sustainable infrastructure for the future. The Green Hydrogen industry is at a nascent stage with an immense potential to offer great opportunities. This partnership is a right step in creating clean, green and sustainable future,” said Subramanian Sarma, Whole Time Director (Energy), L&T.
Green Hydrogen demand in India is estimated to grow up to two million metric tonne per annum (MMTPA) by 2030 in line with the nation’s Green Hydrogen Mission, which would require investments upward of $60 billion. The nation, which targets 500 GW of non-fossil fuel based electricity capacity by 2030, 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 a plan for using the same across the sectors. Green hydrogen can also provide India the energy security by reducing the ever-increasing energy import bill and a pathway to green alternatives for “hard-to-abate” industries, like refineries, fertilizers, steel, and transport.
HydrogenPro designs and supplies customized hydrogen plants in cooperation with global partners and suppliers, all ISO 9001, ISO 45001 and ISO 14001 certified. Its core product is the alkaline high-pressure electrolyzer.
HydrogenPro claims “With the new electrode technology, it is able to increase the efficiency of each unit by 14% to reach 93% of the theoretical maximum.” “This is a significant step forward as the cost of electric power, depending on market prices, amounts to 70-90% of the cost of producing hydrogen. The value of such increased efficiency equals approximately the investment cost for the entire plant in a Total Cost of Operation perspective.”
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