Tata Projects to build EPC solutions as it steps up green hydrogen focus

MD Vinayak Pai says firm will not deploy its own capital in this space, but will work with customers who are ready to invest in these projects

Engineering company Tata Projects is stepping up its focus on the green hydrogen market, as the need for non-fossil-fuel sources gathers pace in the country. In a conversation with Business Standard, Vinayak Pai, managing director, Tata Projects, said, the company was building capabilities to provide engineering, procurement and construction (EPC) solutions for green hydrogen plants.

"We have the skillsets available to us to deal with hydrogen and its unit operations. We will not deploy our own capital in green hydrogen. Instead, we will work with customers who are ready to put in their capital in these projects. We will focus on providing EPC solutions for green hydrogen plants," he said.

Rival Larsen & Toubro (L&T) has taken a different approach to the green hydrogen market, focusing on all ends of the value chain, from producing the fuel to manufacturing critical components such as electrolysers and advanced cell batteries to undertaking EPC projects for customers in the space. The company plans to spend Rs 20,000 crore on green energy projects including green hydrogen over the next 3-4 years. It has also formed a joint venture with Indian Oil Corporation (IOC) to set up electrolysers, a key component, and has a separate JV with IOC and ReNew Power for the green fuel.

In August, L&T set up its first green hydrogen plant at Hazira, Gujarat, at an investment of Rs 25 crore. The unit is capable of producing 45 kg of the fuel per day. Learnings from this plant are expected to be deployed on projects for cement, steel and oil & gas companies, who are keen to use the green fuel for their operations, L&T said.

Tata Projects, on the other hand, will work closely with electrolyser technology manufacturers on green hydrogen projects, Pai said. Tata Power, which holds a major shareholding in Tata Projects, is expected to support the latter in its effort to tap the green hydrogen market, he said.

"As a Tata group company, we are well-positioned because we have Tata Power, which is installing a large number of renewable energy projects. That, combined with our EPC capabilities to deliver hydrogen solutions, will be a strong attraction for the market," Pai said.

Apart from Tata Projects and L&T, groups such as Adani, Reliance Industries and Greenko have announced their forays into green hydrogen recently. In July, France’s TotalEnergies SE and the Adani Group agreed to invest $50 billion over the next 10 years in India to produce green hydrogen and develop an ecosystem around it.

As part of the plan, TotalEnergies would buy 25 per cent in a new clean energy company, Adani New Industries (ANIL), a unit of Adani Enterprises. Last week, ANIL signed a technology development and licensing agreement with Mebourne-based Cavendish Renewable to shore up its capabilities in green hydrogen.

RIL, meanwhile, is investing Rs 75,000 crore in green energy including green hydrogen. This would entail a Rs 60,000-crore investment into four giga-factories to manufacture and fully integrate all critical components of the business. The second part was a Rs 15,000-crore infusion into the value chain, partnerships, and future technologies, the company said.

At its 45th annual general meeting in August, RIL chairman Mukesh Ambani said the company had partnered with Denmark-based Stiesdal to accelerate cost reduction and commercialisation of electrolyser technology. The firm was also in advanced talks to partner with other leading electrolyser technology players and was aiming to transition to green hydrogen production, from grey hydrogen now, by 2025.

• Tata Projects looking to provide EPC solutions for green hydrogen plants in India
• Will not invest its own capital in these projects, says MD
• Plans to work closely with electrolyser manufacturers on green hydrogen projects
• Will be supported by Tata Power, which has major shareholding in Tata Projects