(AOF) – Larsen & Toubro (L&T), an Indian conglomerate specializing in EP1 projects, the manufacture of high-tech products and the provision of services, and McPhy Energy, a specialist in low-carbon hydrogen production and distribution equipment ( electrolyzers and charging stations), today signed a binding agreement for the manufacture of electrolyzers as part of a long-term partnership to respond to the opportunities that are opening up in the emerging low hydrogen market -carbon.
Through this partnership, McPhy will grant L&T an exclusive license on its pressurized alkaline electrolysis technology for the manufacture of electrolysers.
L&T plans to build a large-scale (Gigawatt) electrolyser manufacturing plant in India, based on McPhy technology, to meet the needs of the Indian market as well as certain geographical areas.
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Key points
– Specialist in production and distribution equipment for zero-carbon hydrogen, created in 2008;
– Turnover of €13.1 million achieved 45% in McFilling hydrogen stations, 39% in McLyser high-capacity electrolysers and 16% in Piel catalysts;
– Business model aiming for the minimum rank of 5
th
production and distribution of green hydrogen equipment by supporting customers in industry, mobility and energy in their decarbonization trajectories;
– Capital held 14.8% by EDF and 6% by BPI France -historic shareholders-, 4.6% by Chart Industry and 2.3% by Technip Energies -strategic shareholders-, Luc Poyer chairing the Board of Directors 10 members, Jean-Baptiste Lucas being the general manager;
– Solid financial position with shareholders’ equity of €205 million and, at the end of June, net cash of €142 million.
Challenges
– “Driving CleanEnergy Forward” corporate project to accelerate the deployment of zero-carbon energy ecosystems and high-capacity equipment;
– Innovation strategy financed by a reinforced R&D effort: new generations of electrolysers and stations for large-scale projects (100+MW electrolyzers, stations with 2+ tons per day of distribution capacity) / improvement of the electrical consumption of electrolysers / optimization of gas storage management;
– Environmental strategy integrated into the activity, with 100% of the electricity supply coming from renewable energies, 2025 roadmap currently being structured;
– Realization of the German Djewels project, the largest European zero-carbon hydrogen site;
– European Union agreement for the Gigafactory electrolyser production site in Belfort, the final investment decision for which will be taken in the autumn;
– Fallout from the increase in the order book of €29.1 million at the end of June, heavy industrial investments, in Miniato and Grenoble, and recruitment (doubling of the workforce between 2020 and 2022).
Challenges
– Ability to halve the price of green hydrogen by the end of the decade;
– Waiting for new business opportunities from numerous industrial partnerships –Chart Industries EDF, Enel, Hype, Plastic Omnium, Technip Energies, TSG;
– Regain of investor confidence after 6 loss-making years, including 2021 marked by the postponement of major projects and an industrial accident;
– After stable revenues and a doubling of the net loss on 1
er
semester, lowering of the 2022 objective to moderate revenue growth.
Learn more about the Utilities sector
Greater disparities between utilities
The World Energy Markets Observatory highlights a wide disparity in retail energy prices in Europe. Suffering from both the effect of the rise in wholesale prices and high volatility in selling prices to end consumers, the profitability of players is under pressure. While the sixteen largest European energy suppliers benefited last year from a significant increase in their turnover (+47% compared to 2020), their gross operating margin (Ebitda margin) , deteriorated from 20.2% to 19.6%. Those who had to resort to purchasing electricity on the market had to pay these additional volumes much more expensive than the level of sale prices already set and therefore saw their margins deteriorate.
Faced with the lower availability of its nuclear fleet, EDF, renationalised, should post an annual loss of 29 billion euros in 2022. Engie is doing better because it succeeded in reducing its imports of Russian gas in the first half while benefiting from high electricity prices and its increased exposure to renewable sources.