On March 23, Larsen & Toubro (L&T) shares rose after the company announced that it entered into an electrolyser manufacturing binding contract with McPhy Energy, a France-based leading electrolyser technology and manufacturing firm.

The pact holds a long-term partnership to discover the opportunities in the emerging Green Hydrogen market.

At 9:29 am, L&T shares traded 0.8% higher at Rs 2,232 on the BSE.

Through this partnership, McPhy will grant an exclusive license of its pressurised alkaline electrolyser technology to L&T for electrolysers manufacturing, which includes future product upgrades.

L&T decided to build a Gigawatt-scale manufacturing service for electrolysers grounded McPhy Tech in India to serve domestic needs and cater to the selected geographies.

By 2030, India’s Green Hydrogen production capacity is estimated to grow by at least 5 MMTPA with the nation’s Green Hydrogen Mission, investing about $100 billion. The EPC majorly believes India suits Green Hydrogen production amid low generation costs of renewable electricity from ample availability of solar PV and wind power sources.

The country aims for the world’s largest Green Hydrogen hubs.

Sharekhan by BNP Paribas focuses on sunrise sectors like green hydrogen, e-commerce, data centres, and defence would lead to diversification. It believes that L&T’s leadership and diversified offerings in the EPC domain will be vital to the government’s infrastructure drive and capex recovery in the private sector. Besides, augmented investments in infrastructure and hydrocarbon will offer diverse opportunities.

L&T’s order book records Rs 3.9 lakh crore, up 14% YoY, translating into 2.2 times its trailing 12-month combined income. The company’s first 9 months of FY23 order inflows soared 30% YOY to Rs 1.5 lakh crore.