Larsen & Toubro (L&T) on Thursday said it has signed an electrolyser manufacturing binding agreement with France-based McPhy Energy for a long-term partnership to explore opportunities in the green hydrogen market.

Under the partnership, McPhy will grant L&T an exclusive licence of its pressurised alkaline electrolyser technology, including future product upgrades.

“L&T plans to set up a gigawatt-scale manufacturing facility for electrolysers based on McPhy technologyto serve domestic requirements, as well as cater to other selected geographies,” the Mumbai-headquartered company said in a statement.

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

Green hydrogen a key fuel

L&T’s Whole Time Director (Energy), Subramanian Sarma, said, “The energy industry is undergoing a tectonic shift with green hydrogen emerging as a key fuel in the 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 CEO Jean-Baptiste Lucas said: “McPhy wants to be a global leader in the manufacture of electrolysers. Joining forces withLarsen & Toubro to address new markets is a great opportunity for McPhy and evidence of the attractiveness of its technology.”

“We are looking forward to an exciting journey where this partnership of L&T and McPhy will play a key role in creating sustainable energy infrastructure for the future. The Green Hydrogen industry is at a nascent stage with immense potential, and through this partnership, both organisations will harness their inherent strengths to establish cost leadership through local manufacturing and sourcing.”

Green hydrogen production capacity in India is estimated to grow to at least 5 million tonnes per annum (MTPA) by 2030 in line with the nation’s Green Hydrogen Mission, which would call for investments upwards of $100 billion.