IndianOil to form joint venture for green hydrogen development
The oil company has teamed up with L&T and ReNew to develop, execute & own green hydrogen assets in India in its transition from a grey hydrogen economy to a greener one.
IndianOil has teamed up with Larsen & Toubro and ReNew Power to announce the formation of a joint venture company to develop green hydrogen assets in India. The tripartite venture is a synergistic alliance that brings together the credentials of L&T in designing, executing, and delivering engineering, procurement and construction projects, IndianOil's established expertise in petroleum refining along with its presence across the energy spectrum, and the expertise of ReNew in offering and developing utility-scale renewable energy solutions.
“Being the energy of India, we are committed to powering India's drive towards carbon neutrality by leveraging the power of green hydrogen. While the usage of hydrogen in the mobility sector will take its due time, however the refineries will be the pivot around which India’s green hydrogen revolution will materialise in a substantial way,” said Shrikant Madhav Vaidya, Chairman of IndianOil.
"Siendo la energía de la India, nos comprometemos a impulsar el camino de la India hacia la neutralidad del carbono aprovechando el poder del hidrógeno verde. Aunque el uso del hidrógeno en el sector de la movilidad llevará su tiempo, las refinerías serán el eje en torno al cual se materializará la revolución del hidrógeno verde en la India", dijo Shrikant Madhav Vaidya, Presidente de IndianOil.
Additionally, IndianOil and L&T have signed a binding term sheet to form a JV with equity participation to manufacture and sell electrolyzers used in the production of green hydrogen. The planned joint ventures aim to enable India’s transition from a grey hydrogen economy to a greener economy that increasingly manufactures hydrogen via electrolysis powered by renewable energy.
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.
