Leading manufacturer of electrolysers McPhy Energy, with headquarters in France, has signed a definitive deal with engineering and construction giant Larsen & Toubro (L&T). According to a statement from the company, under the terms of this cooperation, McPhy will give L&T an exclusive licence to manufacture electrolysers, including any future product enhancements, using its pressurised alkaline electrolyser technology.
L&T intends to build an electrolyser production facility on the magnitude of a gigawatt in India using McPhy technology to meet domestic demand as well as the needs of other chosen regions. The proposed arrangement advances McPhy's goal of growing outside of the European market and is consistent with L&T's strategic strategy to be present along the whole green energy value chain.
Speaking on the occasion, Subramanian Sarma, Whole Time Director (Energy), L&T stated, "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.” Due to the low production costs of renewable electricity from a wealth of readily accessible solar PV and wind power sources, India is well suited for the production of green hydrogen. The nation has ambitious intentions to use green hydrogen across all industries and hopes to be one of the biggest hubs for it in the world.
By lowering the country's rising oil import costs and paving the way for environmentally friendly alternatives for "hard-to-abate" industries like refineries, fertilisers, steel, and transportation, it can also give India energy stability. According to India's Green Hydrogen Plan, which would require expenditures of up to $100 billion, the country's green hydrogen production capacity is projected to increase to at least 5 MMTPA by 2030.
Jean-Baptiste Lucas, CEO of McPhy stated that, “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.”