Larsen & Toubro (L&T), an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services, entered an electrolyzer manufacturing binding agreement with McPhy Energy, a France-based leading electrolyzer technology and manufacturing company, for a long-term partnership to explore the opportunities unfolding in the emerging green H₂ market.

Under this partnership, McPhy will grant an exclusive license of its pressurized alkaline electrolyzer technology to L&T for 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.

The proposed agreement is in line with L&T’s strategic vision to be present across the green energy value chain and furthers McPhy’s aim to expand beyond the European market.

Mr. Subramanian Sarma, Whole Time Director (Energy), L&T said, “The energy industry is undergoing a tectonic shift with green H₂ 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 electrolyzers. 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 H₂ 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 H₂ 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 H₂ 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, fertilizers, steel and transport.

Green H₂ production capacity in India is estimated to grow to at least 5 MMtpy by 2030 in line with the nation’s green H₂ mission, which would call for investments upward of $100 B.