GURUGRAM, India, April 3,
2022 /PRNewswire/ -- In a bid to enable India's decarbonization push, Indian Oil
Corporation Ltd., (IndianOil), the country's top refiner and fuel
retailer, Larsen & Toubro (L&T), India's premier engineering & construction
conglomerate, and ReNew Power ("ReNew") (NASDAQ: RNW) (NASDAQ:
RNWWW), India's leading renewable
energy company, announced signing of binding term sheet for the
formation of a Joint Venture (JV) company to develop the nascent
green hydrogen sector in India.
The tripartite venture is a synergistic alliance that brings
together the strong credentials of L&T in designing, executing,
and delivering EPC 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.
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.
Speaking about the joint venture, Mr. SN Subrahmanyan, CEO
& MD, L&T, said, "India plans to rapidly march ahead in its
decarbonization efforts and production of Green Hydrogen is key in
this endeavour. The IndianOil-L&T-ReNew JV will focus on
developing Green Hydrogen projects in a time-bound manner to supply
Green Hydrogen at an industrial scale. While L&T will bring its
strong EPC credentials to the table, IOC being India's premier oil refiner with extensive
capabilities in chemical processes and refining has established
deep R&D capabilities in many aspects of green hydrogen value
chain, and ReNew Power has in a short time established itself as a
leading renewable energy supplier and has built itself a very
strong reputation. We consider this partnership as a significant
step in India's quest for
Addressing another gap in the Green Hydrogen manufacturing
chain, IndianOil-L&T JV will focus on production and sale of
"Both these JVs aim to enable the nation's 'Aatmanirbhar
Bharat' mission to rapidly build, expand and bring in economies of
scale to make green hydrogen a cost-effective energy carrier and a
chemical feedstock for many sectors."
Commenting on the occasion, Mr. Shrikant Madhav Vaidya, Chairman, IndianOil,
said, "Being the Energy of India, we are committed to powering
India's drive towards carbon
neutrality by leveraging the power of green hydrogen. IndianOil is
forging this alliance to realise India's green hydrogen aspirations, which is
in sync with the Hon'ble Prime Minister's vision of making
India a Green Hydrogen generation
and export hub. To start with, this partnership will focus on green
hydrogen projects at our Mathura and Panipat refineries. Alongside,
other green hydrogen projects in India will also be evaluated. 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
materialize in a substantial way."
"The partnership forged today will thus catalyse the greening
of India's energy
Mr. Sumant Sinha, Chairman and
CEO of ReNew Power said, "In alignment with the government's
broader strategic climate goals for 2030 and 2070 set by honourable
Prime Minister Narendra Modi, ReNew
looks forward to working with L&T and IndianOil to build the
green hydrogen business in India.
ReNew, as a leader in intelligent energy solutions and with
advanced capability across renewable energy technologies, is well
poised to complement the capabilities of our partners."
"The timing for these proposed JVs is excellent as they will
help support Government of India's
recently announced green hydrogen policy to boost India Inc.'s
The planned JVs 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.
The central government in February notified the Green Hydrogen
policy aimed at boosting production of green hydrogen and green
ammonia to help the nation become a global hub for the
environmentally friendly version of the element.
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. This may
be driven by potential cost declines in key production technologies
and in clean energy technologies such as solar PV and wind
Today, hydrogen is mainly used in the refining, steel and
fertilizer sectors, which will be the focus of the JVs' initial
efforts. The country's refining sector consumes approx. 2 MMT of
grey hydrogen every year, with IndianOil owning one of the largest
shares of its refining output.
To help decarbonize Indian industry, the new green hydrogen
policy provides for the waiver of Inter-State transmission charges
for a period of 25 years and a banking provision of up to 30 days,
which will help reduce the cost of green hydrogen significantly.
This will, therefore, push the replacement of grey hydrogen with
green. The Ministry of Power has also provided a single
-window-clearance portal for all clearances and open access on
priority to green hydrogen projects.
About ReNew Power
ReNew is one of the largest renewable energy Independent Power
Producers (IPPs) in India and
globally. ReNew develops, builds, owns, and operates utility-scale
wind and solar energy projects, and hydro projects. As of
February 1, 2022, ReNew had a total
portfolio of 10.2 GW of renewable energy projects across
India, including commissioned and
committed projects. For more information, please visit:
www.renewpower.in.; Follow ReNew Power on Twitter @ReNew_Power
SOURCE ReNew Energy Global PLC