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L&T inks agreement with McPhy for electrolyzer technology

Arnes BiogradlijaBy Arnes Biogradlija23/03/20232 Mins Read
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In a long-term partnership to investigate the potential of the green hydrogen industry, France-based McPhy Energy and Larsen & Toubro (L&T) announced that they had signed a contractual deal for the manufacture of electrolyzers.

A pressurized alkaline electrolyzer technology, including any future product enhancements, will be exclusively licensed by McPhy to L&T under the terms of the agreement.

“L&T wants to establish up a gigawatt-scale production facility for electrolyzers based on McPhy technology to satisfy domestic demand, as well as cater to other selected geographies,” the Mumbai-based business said in a statement.

The proposed partnership advances McPhy’s goal of expanding outside of the European market as well as L&T’s strategic ambition to be present throughout the whole value chain for green energy, it was said.

Subramanian Sarma, Full Time Director (Energy) at L&T, stated that “green hydrogen is emerging as a key fuel in the energy basket, causing a tectonic upheaval in the energy market. Given L&T’s strong position across the whole value chain of manufacturing, EPC, and services in the energy sector and McPhy’s expertise in technology and research in this area, we are thrilled to have inked this deal with McPhy, which will be a win-win cooperation.

“McPhy intends to be a global leader in the manufacture of electrolyzers,” McPhy CEO Jean-Baptiste Lucas stated. The fact that McPhy is partnering with Larsen & Toubro to penetrate new areas is both a fantastic opportunity and proof of the technology’s appeal.

“We are anticipating an interesting journey where this collaboration between L&T and McPhy will play a significant part in developing the future energy infrastructure. In this agreement, both organizations will leverage their inherent capabilities to build cost leadership through local production and sourcing in the Green Hydrogen industry, which is still in its infancy but has enormous potential.

In accordance with the country’s Green Hydrogen Mission, which would require expenditures of up to $100 billion, it is anticipated that India’s green hydrogen production capacity will increase to at least 5 million tonnes per annum (MTPA) by 2030.

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