India/Paris, 23 March 2023: Larsen & Toubro (L&T), an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services, today have entered into an Electrolyser Manufacturing Binding Agreement with McPhy Energy (Euronext Paris: FR0011742329, MCPHY.PA), a France-based leading electrolyser technology and manufacturing company, for a long-term partnership to explore the opportunities unfolding in the emerging Green Hydrogen market.
Under this partnership, McPhy will grant an exclusive license of its pressurised alkaline electrolyser technology to L&T for manufacturing of electrolysers, including future product upgrades. L&T plans to set up a Gigawatt-scale manufacturing facility for electrolysers based on McPhy technology in India to serve the domestic requirements as well as cater to the other selected geographies.
The proposed agreement is in line with L&T’s strategic vision to be present across the green energy value chain and also furthers McPhy’s aim to expand beyond the European market.
Commenting on the occasion, Mr. Subramanian Sarma, Whole Time Director (Energy), 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 Agreement with McPhy which will be a win-win partnership given L&T’s strong presence across the entire value chain of manufacturing, EPC and services in the energy sector, and McPhy’s technology and research leadership in this sector”.
“McPhy wants to be a global leader in the manufacture of electrolysers. Joining forces with a major partner like Larsen & Toubro to address new markets is a great opportunity for McPhy and evidence of the attractiveness of its technology.” said Mr. Jean-Baptiste LUCAS, CEO of McPhy.
“We are looking forward to an exciting journey where this partnership of L&T and McPhy will play a key role in creating a sustainable energy infrastructure for the future. The Green Hydrogen industry is at a nascent stage with an immense potential, and through this partnership both organizations will harness their inherent strengths to establish cost leadership through local manufacturing and sourcing” said Mr. Derek M Shah, Sr. Vice President & Head, L&T Energy – Green Mfg. & Development.
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 grand plans for using the same across the sectors. It can also provide India the energy security by reducing the ever-increasing oil import bill while charting a pathway to green alternatives for “hard-to-abate” industries like refineries, fertilisers, steel, and transport.
Green Hydrogen production capacity in India is estimated to grow to at least 5 MMTPA by 2030 in line with the nation’s Green Hydrogen Mission, which would call for investments upward of USD 100 billion.