India’s largest engineering and construction company Larsen & Toubro Ltd. plans to invest as much as $12 billion over the next five years, a third of which will go toward expanding its clean energy business.
The company intends to build 2-3 million tonnes of green hydrogen and ammonia capacity with an investment of close to $4 billion. L&T has approached some coastal states in India to acquire 500-1,000 acres of land for hydrogen facilities, Chief Executive Officer SN Subrahmanyan said in an interview in Mumbai. He will take charge as group chairman in October when veteran AM Naik retires.
The hydrogen foray begins with the manufacture of electrolyzers in December that will be powered using renewable energy from ReNew Power Private Ltd. to produce green hydrogen at the Indian Oil Corp. refinery in Panipat. The project will expand to more IOC refineries and other L&T customers.
The Mumbai-based firm joins big Indian groups including Reliance Industries Ltd. and Adani Enterprises Ltd. with green hydrogen bets as the world races to cut carbon emissions. However, large-scale green hydrogen production isn’t viable at current prices, and cheaper electrolyzer and renewable energy prices are key to controlling costs.
The hydrogen foray begins with the manufacture of electrolyzers in December that will be powered using renewable energy from ReNew Power Private Ltd. to produce green hydrogen at the Indian Oil Corp. refinery in Panipat. The project will expand to more IOC refineries and other L&T customers.
The Mumbai-based firm joins big Indian groups including Reliance Industries Ltd. and Adani Enterprises Ltd. with green hydrogen bets as the world races to cut carbon emissions. However, large-scale green hydrogen production isn’t viable at current prices, and cheaper electrolyzer and renewable energy prices are key to controlling costs.
