Engineering giant Larsen & Toubro and clean energy major Renew Power have joined hands for production of green hydrogen, the latest buzzword in the industry globally. The duo’s foray into green hydrogen follows moves by Reliance Industries, Adani Group and the Tatas.
L&T and Renew, which is backed by Goldman Sachs, sees $2 billion worth of business opportunity from green hydrogen in two years. Green hydrogen is produced by splitting water molecules with renewable power such as solar and wind.
Spearheaded by Sumant Sinha, Renew is a significant player in solar and wind energy in the country.
Demand for green hydrogen from hard-to-abate industries like refineries, steel, fertilisers and city gas grids is predicted to be two million metric tonnes annually by 2030, requiring investments of $60 billion. RIL plans to bring the production cost of green hydrogen to $1 per kg by the end of this decade.
L&T CEO S N Subrahmanyan pointed out that the partnership with Renew is a step towards building a green energy portfolio.