Larsen & Toubro, McPhy Energy sign electrolyzer manufacturing agreement
Larsen & Toubro (L&T) has signed a binding agreement for electrolyzer manufacturing with McPhy Energy, a French electrolyzer technology and manufacturing company.
The agreement envisions a long-term collaboration between the parties to study the opportunities evolving in the green hydrogen market.
Through the agreement, McPhy Energy will issue an exclusive licence for its pressurized alkaline electrolyzer technology to the Indian engineering conglomerate for the manufacturing of electrolyzers. This will include future upgrades to the product.
Larsen & Toubro revealed plans to build a gigawatt-scale manufacturing facility for electrolyzers in India that will be based upon McPhy technology to meet the local demands as well as provide to other countries.
The agreement proposed is aligned with Larsen & Toubro’s strategy to be active across the value chain of green energy and further supports McPhy Energy’s goal to expand its reach beyond the European market.
Jean-Baptiste LUCAS — McPhy Energy CEO said: “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.”
According to Larsen & Toubro, India is an ideal location for green hydrogen production due to the low cost of generation for renewable energy produced from abundantly accessible wind power and solar photovoltaic (PV) sources. The country hopes to be one of the largest green hydrogen hubs and has big plans to utilize this technology across different sectors.
It could also give India security of energy by reducing the growing cost of imports from oil while also establishing an alternative route to green energy in “hard-to-abate” industries like refineries fertilizers, steel, and transportation.
In addition, Larsen & Toubro said that the capacity of green hydrogen production in India is expected to increase at a minimum of 5 MMTPA by 2030, in line with the country’s Green Hydrogen Mission, which calls for investment in the excess of $100 billion.
Subramanian Sarma — Larsen & Toubro Whole Time Director (Energy) 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.”
Earlier this month, Indian energy and environment solutions provider Thermax announced a partnership with Fortescue Future Industries to explore opportunities for green hydrogen in India.