L&T signs electrolyzer manufacturing agreement with McPhy Energy

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Larsen & Toubro (L&T), an Indian multinational engaged in EPC projects, hi-tech manufacturing, and services, has entered into an electrolyzer manufacturing agreement with McPhy Energy, a France-based electrolyzer technology and manufacturing specialist. The two companies plan 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 pressurized alkaline electrolyzer technology to L&T for the manufacturing of electrolyzers, including future product upgrades.

L&T plans to set up a gigawatt-scale manufacturing facility for electrolyzers based on McPhy technology in India to serve the domestic requirements as well as cater to the other selected geographies.

L&T sees the proposed agreement in line with its strategic vision to be present across the green energy value chain, while the collaboration also furthers McPhy’s aim to expand beyond the European market. The partnership will leverage 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.

Through this partnership, both organizations will harness their inherent strengths to establish cost leadership through local manufacturing and sourcing.

India is well suited for green hydrogen production due to the low costs of renewable electricity generation. The nation aims to be among the world’s largest green hydrogen hubs and plans green hydrogen adoption across different 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 million metric tonnes per annum (MMTPA0 by 2030 in line with the nation’s Green Hydrogen Mission, which would require investments upward of $100 billion.

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