L&T eyes export-oriented green power projects

Larsen & Toubro (L&T) is now scouting for land in Odisha to set up export-oriented green hydrogen and ammonia projects.

The company plans to develop greenfield projects at ports for easy access to the export market, to capitalise on the global shift towards renewable energy and sustainable practices.

The conglomerate’s plans to acquire land on both the eastern and western coasts of India signals a move to ensure good connectivity for its operations, logistical efficiency, and market access across India and beyond.

L&T’s strategy for green hydrogen and ammonia focusses on establishing a state-of-the-art electrolyser manufacturing facility, and executing engineering, procurement and construction (EPC) projects. The company, which has been focussed on its asset-light engineering business, is also looking to invest in green hydrogen and ammonia manufacturing as a project developer for the Indian and export markets.

The group has invested about Rs 500 crore in electrolyser manufacturing, with the first sale expected to commence in September.

While the company is looking at export markets for green ammonia, it will set up a facility only if there are offtake agreements.

In March, L&T commissioned its first indigenously manufactured hydrogen electrolyser at A M Naik Heavy Engineering Complex in Hazira, Gujarat. L&T Electrolysers Limited, a newly incorporated entity of L&T, is focussed on manufacturing pressurised alkaline electrolysers using technology from McPhy Energy, France.

L&T is looking at undertaking EPC projects to tap the opportunity riding from energy transition globally,and leveraging its core competence. Sarma said that revenue from green projects already comprises 40 percent of the firm’s revenues,and will touch 50 percent soon.