Larsen & Toubro (L&T), an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services, today announced it has entered a Memorandum of Understanding (MoU) with HydrogenPro AS (OSE: HYPRO), a Norway-based leading Electrolyser technology and manufacturing company for partnership to tap the emerging Green Hydrogen market.
Under this agreement, L& T and Hydrogen Pro will jointly work towards setting up of a joint venture in India for Gigawatt-scale manufacturing of Alkaline Water Electrolysers based on HydrogenPro technology for Indian market and other select geographies. The proposed joint venture in India is in line with L& T's strategic vision to be present across the green energy value chain and HydrogenPro's strategy of establishing a global manufacturing footprint to maintain cost leadership and ensure local presence.
Commenting on the occasion, Mr. S N Subrahmanyan, CEO & MD, L&T 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 MoUwith HydrogenPro. This will be a win-win partnership given our extensive relationship across the energy industry, deep EPC experience in this sector and successful ongoing collaborations with many MNCs and HydrogenPro's focus to stay ahead of the curve as far as technology leadership is concerned".
"We're extremely pleased to enter this Memorandum of Understanding with L& T, an E&C powerhouse which is the perfect partner to establish HydrogenPro in the Indian market, a huge and growing energy market with tremendous potential for hydrogen-based solutions," said Mr. Elling Nygaard, CEO of HydrogenPro.
"We are looking forward to this exciting journey and make this partnership work for creating sustainable infrastructure for the future. The Green Hydrogen industry is at a nascent stage with an immense potential to offer great opportunities. This partnership is a right step in creating clean, green and sustainable future," said Mr. Subramanian Sarma, Whole Time Director (Energy), L&T.
India has made the world's largest expansion plan for renewable energy transition, with a target of 175GW of renewables by 2022 and 500 GW by 2030.
India is well suited for Green Hydrogen production due to the low generation costs of renewable electricity from abundantly available solar PV and wind power sources. The country aims to be among the world's largest Green Hydrogen hubs and has plan for using the same across the sectors. It can also provide India the energy security by reducing the ever-increasing energy import bill and a pathway to green alternative for "hard-to-abate" industries, like refineries, fertilisers, steel, and transport.
Green Hydrogen demand in India is estimated to grow up to 2 MMTPA by 2030 in line with the nation's Green Hydrogen Mission, which would call for investments upward of $60 billion.
Shares of Larsen & Toubro Limited was last trading in BSE at Rs. 1924.70 as compared to the previous close of Rs. 1899.85. The total number of shares traded during the day was 59418 in over 5927 trades.
The stock hit an intraday high of Rs. 1931.05 and intraday low of 1850.80. The net turnover during the day was Rs. 112770780.00.