Larsen & Toubro Ltd. (L&T) announced plans to invest up to $12 billion over the next five years, with one-third of the funds earmarked for clean energy initiatives. The company aims to build 2–3 million tonnes of green hydrogen and ammonia capacity, backed by a $4 billion investment. To support this, L&T has approached coastal states in India to acquire 500–1,000 acres of land for large-scale hydrogen facilities, Chief Executive Officer S.N. Subrahmanyan confirmed.
Hydrogen Strategy Gains Momentum
The company’s hydrogen foray will begin in December, when it starts manufacturing electrolyzers powered by renewable energy from ReNew Power Private Ltd. The first green hydrogen will be produced at Indian Oil Corp.’s refinery in Panipat, with expansion planned to other IOC refineries and additional L&T customers.
The move positions L&T alongside Indian conglomerates Reliance Industries Ltd. and Adani Enterprises Ltd., which have also made bold bets on green hydrogen as the world accelerates efforts to cut carbon emissions.
Challenges of Large-Scale Hydrogen Production
Despite the ambition, cost challenges remain. Large-scale green hydrogen production is not currently viable due to high electrolyzer and renewable energy costs. Subrahmanyan emphasized that scaling investments depends on lower tariffs. “You can’t keep on building capacity if tariffs don’t come down,” he said, noting that L&T will accelerate investments once costs fall.
L&T Energy Green Tech to Lead Clean Energy Push
The company has tasked its subsidiary, L&T Energy Green Tech, with executing the clean energy strategy. Over time, the unit may also expand into fuel cells, grid-scale batteries, and hydrogen vending solutions. L&T is also exploring options to monetize the clean energy business, potentially unlocking value from its growing portfolio.
Strengthening India’s Energy Transition
As reported by business-standard.com, by investing heavily in green hydrogen and ammonia, L&T is reinforcing its commitment to India’s energy transition and global decarbonization goals. If successful, the company’s $12 billion strategy could reshape India’s clean energy landscape, creating new opportunities in hydrogen technology and beyond.
