Larsen & Toubro, Indian Oil Corporation, and ReNew have joined forces to pioneer the burgeoning green hydrogen market in India through a joint venture christened GH4India Private Limited. The trifecta will each own an equal 33.33% stake in the venture, according to regulatory filings by Larsen & Toubro (L&T).
Last April, the companies inked a binding term sheet setting the stage for the joint venture, earmarked for advancing the green hydrogen industry in India. GH4India aims to concentrate on not only green hydrogen but also its derivatives like green ammonia and methanol. The venture will seek to develop these assets alongside renewable energy resources through various ownership and operational models.
GH4India starts with an authorized capital of Rs 3 crore, comprising 30,00,000 equity shares at Rs 10 each. The venture seeks to address India’s increasing dependency on imported fossil fuels by boosting its green hydrogen production capabilities. Current estimates suggest that India’s hydrogen demand will soar to 12 MMT by 2030. Astonishingly, around 40% of that demand (about 5 MMT) is expected to be met through green hydrogen, as highlighted in the draft National Hydrogen Mission guidelines.
While hydrogen is predominantly used in India’s refining, steel, and fertilizer industries, the consortium will initially focus on these sectors. IndianOil, one of the joint venture partners, has one of the largest shares in the country’s hydrogen-refining output, currently dominated by grey hydrogen.
To expedite the shift from grey to green hydrogen, the newly introduced green hydrogen policy has paved the way for financial incentives. These include the waiving of Inter-State transmission charges for 25 years and a banking provision lasting up to 30 days. Such measures are predicted to significantly lower the production costs of green hydrogen, making it a competitive alternative to grey hydrogen.
The collaboration draws upon L&T’s proficiency in Engineering, Procurement, and Construction (EPC) projects, Indian Oil’s experience in petroleum refining, and ReNew’s acumen in large-scale renewable energy solutions. All eyes are now on GH4India as it steps into the arena of green hydrogen, a critical component for India’s sustainable and energy-secure future.
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