To rapidly scale up the production of green hydrogen and ammonia, India needs a systematic, long-term framework, according to a senior Larsen & Toubro (L&T) official. The company stressed that predictable policies are essential to attract global capital and accelerate the country’s clean energy transition.
L&T Expands Its Hydrogen Portfolio
L&T’s subsidiary is already setting up a green hydrogen plant at Indian Oil Corporation’s Panipat refinery and continues to explore new opportunities in the hydrogen space. Subramanian Sarma, Deputy Managing Director and President of L&T Group, said that demand creation through clear procurement mechanisms for sectors such as refining, fertilizers, steel, and heavy mobility will be crucial. He added that long-term support for early electrolyser manufacturing and green-molecule projects will help address viability challenges in the initial years.
Key Enablers for a Competitive Hydrogen Hub
Sarma noted that simplified access to round-the-clock renewable power, grid connectivity, streamlined approvals, and land access mechanisms will further strengthen India’s competitiveness. He emphasised the need for a stable, transparent, and forward-looking policy architecture. In 2022, L&T announced plans to invest $2.5 billion in green energy over 3–5 years.
Balanced Investment Strategy
According to Sarma, L&T’s capital allocation strategy aligns with long-term global energy trends. While the hydrocarbon EPC business remains strong and profitable, the company continues to invest in digitalisation, modularisation, talent development, and safety systems to boost competitiveness. He said the company aims to build enduring capabilities across green hydrogen, electrolysers, offshore wind components, and grid and storage solutions.
Global Partnerships in Focus
L&T is in discussions with global firms for minority stake partnerships in its green hydrogen and ammonia projects. These companies view India as an emerging hub for green hydrogen and green ammonia manufacturing. L&T also plans to maintain its presence in the core hydrogen EPC business over the medium and long term.
Strategy: Strengthen Hydrocarbons While Growing Green
Sarma said the company’s strategy is two-fold: strengthen its traditional hydrocarbon EPC capabilities while expanding into low-carbon and renewable sectors. These include CCUS, blue and green hydrogen-ammonia, and onshore and offshore wind projects. He added that L&T sees this shift not as a pivot away from hydrocarbons but as a natural transition where both conventional and green solutions coexist.
Building Integrated Clean Energy Ecosystems
L&T is working to integrate clean energy ecosystems that seamlessly combine generation, storage, transmission, and distribution. The company is building capabilities in battery energy storage systems (BESS), pumped storage, and hybrid combinations of solar and wind. In parallel, L&T is investing in advanced forecasting tools, energy management systems, and AI/ML-driven optimisation platforms—technologies that are essential for renewables to handle baseload responsibilities. The company has already launched pilot projects where hybrid generation is paired with battery storage and controlled digitally for grid stability and load shifting.
Strong Growth Outlook in West Asia
L&T expects West Asia to contribute significantly to its international order book over the next three to five years. Sarma said the company anticipates strong growth in both domestic and overseas markets, with faster acceleration in the Gulf region.
Saudi Arabia: A Key Growth Market
As reported by thehindubusinessline.com, Saudi Arabia represents one of L&T’s most promising markets due to large opportunities in hydrocarbons, clean energy, grid systems, and infrastructure. “By 2030, we expect Saudi Arabia to be one of our largest and most consequential markets,” Sarma said, highlighting a strong pipeline of opportunities across traditional and transition-linked sectors.
