How joint venture between IOC, L&T and ReNew aims to boost green hydrogen production in India – EQ Mag Pro
Indian Oil Corporation (IOC), Larsen & Toubro (L&T), and ReNew Power (ReNew) have signed a binding term sheet to set up a Joint Venture (JV) company to develop the green hydrogen sector in India.
This comes days after Union Transport Minister Nitin Gadkari travelled to the Parliament in a Hydrogen-based Fuel Cell Electric Vehicle (FCEV), in what could be a strong indication of a shift in stance by the Centre that has so far backed conventional battery-powered EVs.
How will the JV help develop the green hydrogen sector?
The Joint Venture will aim to supply green hydrogen at an “industrial scale”. Prime Minister Narendra Modi has said that India can become a hub for green hydrogen as the country has an inherent advantage in the form of abundant renewable energy.
“The IndianOil-L&T-ReNew JV will focus on developing green hydrogen projects in a time-bound manner to supply it at an industrial scale,” SN Subrahmanyan, the CEO and MD of L&T said, while adding that the infrastructure expertise of his company, the research and development capacity of IOC and the renewable energy expertise of ReNew would make the partnership “a significant step” in the production of green hydrogen.
The Centre has released draft guidelines on the National Hydrogen Mission which aims to increase production to 5 million metric tonnes (MMT) by 2030 to meet about 40 per cent of domestic requirements. Green hydrogen is produced through electrolysis of water using renewable energy.
Nearly all of the hydrogen currently produced in India is grey hydrogen using natural gas and ammonia. The government is aiming to use green hydrogen as a substitute for grey hydrogen which is used by oil refiners and fertiliser manufacturers.
Additionally, IOC and L&T have also entered into a JV to produce hydrogen electrolysers.
What are other key policy measures to boost green hydrogen production?
The centre is considering a proposal to introduce a Rs 15,000-crore Production Linked Incentive (PLI) scheme for electrolysers. In February, the centre notified a green hydrogen and green ammonia policy that offers 25 years of free power for any new renewable energy plants set up for green hydrogen production before July 2025.
The government is also planning to introduce mandates requiring that the oil refining, fertiliser and steel sectors procure green hydrogen for a certain proportion of their requirements. Power Minister RK Singh has previously noted that the mandate for the refining sector could start at 15-20 per cent of the sector’s total requirement.
Source: indianexpress
