Larsen & Toubro (L&T) is diving deeper into the world of clean energy with the launch of a new subsidiary—Panipat Green Hydrogen Pvt Ltd. Set up in June 2025, this new arm is fully owned by L&T and is focused on rolling out large-scale projects in green hydrogen and clean ammonia. It’s a big step that aligns with India’s ambitious National Green Hydrogen Mission and signals L&T’s growing commitment to industrial decarbonization.
Why “Panipat” in the name if the action’s in Gujarat?
Though the company is named after Panipat, a city known for its industrial roots in Haryana, the real action is happening in Kandla, Gujarat. This strategic move makes a lot of sense. Kandla is a major port city, which gives L&T a huge logistical edge—perfect for exporting green energy. They’ve already locked down land there, setting the stage for a massive push into green hydrogen and ammonia production, going all in on their engineering expertise and the prime location.
The tech that makes it all happen
So what exactly is green hydrogen? It’s made through a process called electrolysis, where electricity—ideally from renewable sources—is used to split water into hydrogen and oxygen. Since there’s no carbon involved, the result is a clean, zero-emission fuel. When that hydrogen is combined with nitrogen, you get green ammonia, which can be used either as fertilizer or as an energy carrier—both with significantly fewer emissions than traditional methods.
A strong financial backbone, and policy winds at their back
L&T isn’t making this leap blindly. The company’s in a solid position financially, backed by a ‘BBB+’ Fitch rating. And they’re not in it alone—support from government policy incentives is giving the whole initiative an extra push. While challenges around cost and hydrogen infrastructure still need to be figured out, the long-term upside looks promising.
If all goes according to plan, this move could mean more than just cleaner fuel. We’re talking about potential job creation, a stronger local supply chain, and a real shot for India to carve out a role as a global hub for clean energy exports.
