New Delhi: Larsen & Toubro (L&T), a Mumbai-based multinational company, on Thursday said it has entered into an electrolyser manufacturing binding agreement with France’s electrolyser manufacturer, McPhy Energy, for a long-term partnership to explore the opportunities in the green hydrogen market.

According to the official press release, under the partnership, McPhy will grant an exclusive license of its pressurised alkaline electrolyser technology to L&T for manufacturing of electrolysers, including future product upgrades.

“L&T plans to set up a gigawatt-scale manufacturing facility for electrolysers based on McPhy technology in India to serve the domestic requirements as well as cater to the other selected geographies,” it added.

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.

“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,” said Subramanian Sarma, whole-time director – energy, L&T.

Jean-Baptiste LUCAS, CEO of McPhy said that McPhy wants to be a global leader in the manufacture of electrolysers and is partnering with L&T to address new markets.

Green hydrogen production capacity in India is estimated to grow to at least 5 MMTPA by 2030 in line with the nation’s Green Hydrogen Mission, which would call for investments upward of $100 billion.