IndianOil, L&T and ReNew to form JV for development of Green Hydrogen Business

New Delhi, April 04, 2022: Indian Oil Corporation Ltd., Larsen & Toubro (L&T), and ReNew Power (“ReNew”) (NASDAQ:RNW, RNWWW), announced signing of binding term sheet for the formation of a Joint Venture (JV) company to develop the nascent green hydrogen sector in India.

The tripartite venture is a synergistic alliance that brings together the strong credentials of L&T in designing, executing, and delivering EPC projects, IndianOil’s expertise in petroleum refining along with its presence across the energy spectrum and the expertise of ReNew in offering and developing utility-scale renewable energy solutions.

Additionally, IndianOil and L&T have signed a binding term sheet to form a JV with equity participation to manufacture and sell Electrolyzers used in the production of Green Hydrogen.

Speaking about the joint venture, SN Subrahmanyan, CEO & MD, L&T, said,“India plans to rapidly march ahead in its decarbonization efforts and production of Green Hydrogen is key in this endeavour. The IndianOil-L&T-ReNew JV will focus on developing Green Hydrogen projects in a time-bound manner to supply Green Hydrogen at an industrial scale. While L&T will bring its strong EPC credentials to the table, IOC being India’s premier oil refiner with extensive capabilities in chemical processes and refining has established deep R&D capabilities in many aspects of green hydrogen value chain, and ReNew Power has in a short time established itself as a leading renewable energy supplier and has built itself a very strong reputation. We consider this partnership as a significant step in India’s quest for alternative energy.

Addressing another gap in the Green Hydrogen manufacturing chain, IndianOil-L&T JV will focus on production and sale of Electrolyzer.”

“Both these JVs aim to enable the nation’s ‘Aatmanirbhar Bharat’ mission to rapidly build, expand and bring in economies of scale to make green hydrogen a cost-effective energy carrier and a chemical feedstock for many sectors.”

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Commenting on the occasion, Shrikant Madhav Vaidya, Chairman, IndianOil, said, “Being the Energy of India, we are committed to powering India’s drive towards carbon neutrality by leveraging the power of green hydrogen. IndianOil is forging this alliance to realise India’s green hydrogen aspirations, which is in sync with the Hon’ble Prime Minister’s vision of making India a Green Hydrogen generation and export hub. To start with, this partnership will focus on green hydrogen projects at our Mathura and Panipat refineries. Alongside, other green hydrogen projects in India will also be evaluated. While the usage of hydrogen in the mobility sector will take its due time, however the refineries will be the pivot around which India’s green hydrogen revolution will materialize in a substantial way.”

Sumant Sinha, Chairman and CEO of ReNew Power said, “In alignment with the government’s broader strategic climate goals for 2030 and 2070 set by honourable Prime Minister Narendra Modi, ReNew looks forward to working with L&T and IndianOil to build the green hydrogen business in India. ReNew, as a leader in intelligent energy solutions and with advanced capability across renewable energy technologies, is well poised to complement the capabilities of our partners.”

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