L&T, IOCL & Renew form a joint venture for green hydrogen
EPC major Larsen & Toubro, refining and marketing major Indian Oil Corporation and renewable energy player Renew have formed an equal joint venture to set up their green hydrogen business.
The joint venture company is called GH4India Private Limited where the companies will hold 33.33% each, L&T said in a regulatory filing.
The companies had last April signed a binding term sheet for the formation of a joint venture company to develop the nascent green hydrogen sector in India.
«The joint venture is formed for the purpose of development of green hydrogen and its derivatives (including green ammonia, methanol, etc) production assets and associated renewable assets through any model of ownership and operatorship,'' L & T said in a regulatory filing.
Authorised capital of the company is Rs 3 crore (30,00,000 equity shares of Rs 10 each).
For countries like India, with its ever-increasing oil and gas import bill, green hydrogen can also help provide crucial energy security by reducing the overall dependence on imported fossil fuels.
While nearly all hydrogen produced in India today is grey, it is estimated that demand for hydrogen will be 12 MMT by 2030 and around 40% of the element produced in the country (around 5 MMT)
will be green, as per the draft National Hydrogen Mission guidelines.
By 2050, nearly 80% of India’s hydrogen is projected to be ‘green’ – produced by renewable electricity and electrolysis. Green hydrogen may become the most competitive route for hydrogen
production by around 2030.
