L&T Inks Agreement With McPhy Of France For Electrolyser Technology

Larsen & Toubro (L&T) has signed an agreement with McPhy, a France-based electrolyser technology and manufacturing company, to construct a “gigawatt (Gw) scale” electrolyser manufacturing facility and tap into the country's green hydrogen ecosystem.

Subramanian Sarma, whole-time director (energy), L&T, said that through this partnership, the business hopes to sell both green hydrogen and electrolysers.

“We are investigating the value of green energy in the country, and we have naturally begun with manufacturing. We identified electrolyzers as a key value proposition,” Sarma explained.

McPhy will give L&T an exclusive license to its pressurised alkaline electrolyser technology for the manufacture of electrolysers, including future product upgrades, as part of this collaboration.

According to the company, L&T intends to establish a Gw-scale manufacturing facility for electrolysers based on McPhy technology in India to service domestic needs as well as other selected geographies.

This is L&T's second collaboration with an electrolyzer manufacturer. It inked a memorandum of understanding with HydrogenPro AS, a Norwegian electrolyser technology and manufacturing firm, in January of last year.

Sarma said that through this manufacturing venture, L&T will investigate the selling of electrolysers as well as green hydrogen.

“In the short term, we expect 6-7 Gw of electrolyser demand and it will only grow from there. Real development will occur when economic conditions are favourable and the entire value chain is cost competitive — whether it is energy costs, infrastructure, or other factors. We intend to provide a robust and reliable product at a competitive price,” he said, adding that the business anticipates adaptation in the refinery, steel and cement sectors, followed by the transportation sector in the near future.

In a public statement, L&T stated that the planned agreement is consistent with L&T's strategic vision of being present across the green energy value chain and also advances McPhy's goal of expanding beyond the European market.

L&T declared the commissioning of a green hydrogen plant at its AM Naik Heavy Engineering Complex in Hazira, Gujarat, in August of last year. The plant will generate 45 kilograms of green hydrogen per day for captive consumption in the company's Hazira manufacturing centre.