Indian Oil Corporation (IOC.NS), Larsen & Toubro (LART.NS), and Goldman Sachs-backed renewable energy business ReNew Power will form a joint venture to build India’s green hydrogen sector, which would help the country decrease carbon emissions.
According to a joint statement released on Monday, the three firms have signed a binding term sheet to collaboratively develop green hydrogen projects.
India, the world’s third-largest carbon dioxide emitter, wants to create 5 million tonnes of green hydrogen annually by 2030 in order to satisfy its climate goals and establish itself as a manufacturing and export powerhouse for the fuel.
Indian companies, including Mukesh Ambani and Gautam Adani, the country’s wealthiest individuals, had already stated their desire to produce green hydrogen.
IOC and L&T, a state-owned refinery and engineering and construction corporation, inked a binding term sheet to create a joint venture to manufacture electrolysers, which are utilised in the generation of green hydrogen.
Green hydrogen has some of the finest environmental credentials among cleaner-burning fuels, and it will be utilised in refineries to transform crude oil into value-added products like gasoline and diesel, replacing carbon-emitting fuels.
For manufacturing green hydrogen, an electrolyser splits water into hydrogen and oxygen using renewable energy sources such as solar or wind.
According to S.M. Vaidya, chairman of IOC, the cooperation would first focus on green hydrogen projects at IOC’s Mathura and Panipat refineries in northern India, as well as evaluating developing other green hydrogen projects around the nation.
India also intends to give federal financial assistance for the installation of electrolysers, with the goal of making the use of green hydrogen essential in refineries and fertilizer factories. Find out more
According to the statement, India’s refining sector utilises roughly 2 million tonnes of grey hydrogen, which is created by using gas rather than renewable energy.
“The Indian Oil-L&T-ReNew JV will focus on constructing Green Hydrogen projects in a time-bound way in order to deliver Green Hydrogen on an industrial scale,” stated L&T CEO S.N. Subrahmanyan.
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