Major construction company L&T establishes division for creating green hydrogen ventures
Larsen & Toubro (L&T), a leading construction conglomerate, has made significant strides in India's green hydrogen sector with the formation of a new subsidiary, L&T Green Energy Kandla Private Limited (LTGEK). The announcement was made in a filing to the National Stock Exchange (NSE) on April 4, 2025.
The Panipat Green Hydrogen Plant
In a move to support India's net-zero and green hydrogen ambitions, L&T has partnered with Indian Oil Corporation Ltd (IOCL) to establish a large-scale green hydrogen plant at the Panipat Refinery in Haryana. The plant, which will be set up on a build-own-operate (BOO) basis, is designed to produce 10,000 tonnes of green hydrogen annually. This hydrogen will be supplied to IOCL for 25 years.
The plant will employ high-pressure alkaline electrolyser technology, powered fully by renewable energy, and will be one of the largest green hydrogen plants in India.
The Deendayal Port Green Hydrogen Plant
L&T has already taken steps towards green hydrogen production with the implementation of a 1 MW green hydrogen plant at Deendayal Port, Kandla, under the Make-in-India initiative. This plant, the first phase of a larger 10 MW facility, is expected to produce about 140 metric tonnes of green hydrogen annually.
LTGEK's Role and Future Plans
LTGEK, the newly incorporated subsidiary, will focus on the development of green hydrogen and its derivatives, including green ammonia. Derek Shah, senior vice president at L&T and head of Green Manufacturing and Development, announced plans to commercially roll out 150-200 megawatts (MW) of electrolyser capacity by September 2025.
The exact nature of the other related business activities that LTGEK will engage in was not specified in the provided information.
What is Green Hydrogen?
Green hydrogen is a clean and renewable form of hydrogen gas produced by using electricity from sources like solar, wind, or hydropower. It is an environmentally-friendly alternative due to its production method, as it does not emit carbon dioxide (CO2) or other harmful greenhouse gases. This makes it a promising solution for decarbonising hard-to-abate sectors like refining and fertilisers.
L&T Energy Green Tech Limited, along with its nominee shareholder, has fully subscribed to the equity shares of LTGEK, amounting to Rs 1,00,000.
As L&T continues to expand its green hydrogen projects, it positions itself as a pioneer and leader in India’s green hydrogen ecosystem, aiming to scale industrial adoption of green hydrogen across various sectors.
- The Panipat Green Hydrogen Plant, a large-scale facility established by Larsen & Toubro (L&T) and Indian Oil Corporation Ltd (IOCL), aims to produce 10,000 tonnes of green hydrogen annually, powered entirely by renewable energy.
- L&T's green hydrogen projects are not limited to the Panipat plant, as they have already implemented a 1 MW green hydrogen plant at Deendayal Port, Kandla, with plans to scale up to a 10 MW facility in the future.
- L&T Green Energy Kandla Private Limited (LTGEK), a newly formed subsidiary, will focus on the development of green hydrogen and its derivatives, such as green ammonia, with plans to commercially roll out 150-200 megawatts (MW) of electrolyser capacity by September 2025.
- Green hydrogen, a clean and renewable form of hydrogen gas, is produced using electricity from sources like solar, wind, or hydropower, thereby making it an environmentally-friendly alternative for decarbonising sectors like refining and fertilisers, and a crucial solution for India's net-zero ambitions.
