Larsen & Toubro’s green molecules arm, L&T Energy Greentech, is moving aggressively to cement its leadership in India’s emerging green hydrogen sector. The company recently secured the tender to build India’s largest green hydrogen plant at Indian Oil Corporation Ltd’s (IOCL) Panipat refinery and, just last month, commissioned the country’s first megawatt-scale green hydrogen facility for the Deendayal Port Authority (DPA) in Kandla. Derek M Shah, CEO of L&T Energy Greentech, outlined the company’s expansion roadmap, diversification plans, and vision for driving the National Green Hydrogen Mission (NGHM) forward despite early challenges.
Overcoming Early Hurdles in NGHM
Globally, green hydrogen is still in its infancy. Shah noted that resistance to change was expected—especially when new technologies mean higher initial costs. Key concerns included who would bear the cost burden, how financial institutions would fund the sector, and the time needed to establish policies, standards, and market structures.
Since NGHM’s launch in January 2023, Germany, Japan, India, and other nations have driven gradual but steady progress. Oil marketing companies now plan more tenders following the first one’s completion. The Ministry of New and Renewable Energy (MNRE) also plans multiple bids for green ammonia projects.
Three-Pronged Value Chain Strategy
To build a competitive edge, L&T Energy Greentech is targeting three critical segments of the green hydrogen value chain:
- Technology and Manufacturing
The company manufactures alkaline electrolysers with a fully domestic supply chain—currently the only one of its kind in India. It plans to diversify into fuel cell production and expand its Hazira (Surat) electrolyser facility from 400 MW to 1 GW to cater to growing market demand.
- Engineering, Procurement, and Construction (EPC)
Leveraging L&T’s EPC expertise, the company is executing major green hydrogen and derivative projects. Following the successful 1 MW green hydrogen plant at DPA Kandla, L&T is set to receive an order for a 10 MW facility at the same port.
- Project Development
L&T plans to develop large-scale green hydrogen and green ammonia plants independently. A 1.8 million tonne per annum (MTPA) green ammonia facility is in the works at Kandla port, with a similar-scale plant planned for Paradip port in Odisha.
Mega Investments at Strategic Port Locations
The Kandla project, estimated at ₹35,000–40,000 crore over six phases, will serve export markets via shipping green corridors. The Paradip facility will involve similar investments, enabling L&T to establish a strong presence on both India’s west and east coasts.
Shah explained, “Globally, green corridors in shipping are gaining momentum. Paradip to Singapore and Rotterdam are already part of these routes. In the future, marine transportation will face strict emission regulations, and port facilities must be compliant. We are preparing for that reality.”
Targeting Global Off-Takers and Export Markets
L&T Energy Greentech is in discussions with multiple potential off-takers and expects to finalise an agreement by early 2026. Export markets remain central to its strategy, with Europe (driven by the carbon border adjustment mechanism) and Japan emerging as high-potential destinations. South Korea and Singapore are also key targets, with Singapore eyeing green hydrogen for bunkering operations.
Expanding Beyond Industrial Use
As reported by moneycontrol.com, beyond refineries, L&T aims to supply green hydrogen as an energy storage solution for data centres. It also plans to support fuel-cell-based mobility and serve the shipping sector. This diversification underscores the company’s commitment to integrating green hydrogen across multiple industries, accelerating India’s transition toward a low-carbon economy.
