Larsen & Toubro’s green molecules arm, L&T Energy Greentech, has secured the tender to build India’s biggest green hydrogen plant at Indian Oil Corporation Ltd’s (IOCL) Panipat refinery, marking a significant milestone in the country’s clean energy journey.
The win comes close on the heels of the company commissioning India’s first megawatt-scale green hydrogen plant for the Deendayal Port Authority (DPA) in Kandla last month. Speaking to Moneycontrol, CEO Derek M Shah outlined L&T Energy Greentech’s ambitious roadmap in a sector still finding its footing globally.
Despite slow progress under the National Green Hydrogen Mission (NGHM) since its launch in January 2023, Shah said the momentum is building. “With the first tender now out of the way, many more from oil marketing companies are expected. The government is serious about its net zero target, so NGHM will only accelerate from here,” he added.
Three-Pronged Growth Strategy
The company’s expansion will focus on:
Technology & Manufacturing – Scaling up its Hazira, Surat electrolyser facility from 400 MW to 1 GW, and diversifying into fuel cell manufacturing. L&T Energy Greentech is currently the only Indian firm producing alkaline electrolysers with an entirely domestic supply chain.
EPC for Green Hydrogen Projects – Leveraging L&T’s strong EPC expertise, with another DPA order in the pipeline for a 10 MW green hydrogen plant, in addition to the 1 MW project already delivered.
Project Development – Establishing large-scale green hydrogen and green ammonia facilities, starting with a 1.8 million tonne per annum (MTPA) plant at Kandla port and a similar-scale project at Paradip port in Odisha.
Multi-Billion Rupee Investments
The Kandla project alone is expected to cost between ₹35,000 crore and ₹40,000 crore over six phases in five to six years. The Paradip project will require similar investment. Ports have been chosen strategically to align with emerging global green shipping corridors, including Paradip–Singapore and Paradip–Rotterdam.
Global Market Push
L&T Energy Greentech is in advanced talks with potential off-takers and aims to announce agreements by March 2026. Europe, Japan, South Korea, Singapore, and parts of the Middle East are seen as key export destinations due to strong decarbonisation mandates and carbon border adjustment measures.
Beyond refineries, the company sees green hydrogen as a future energy storage solution for data centres, mobility through fuel cells, and shipping.
“Globally, green hydrogen is still at a nascent stage, but with strong moves from countries like Germany, Japan, and India, we are seeing real traction,” Shah said. “We are preparing for the future.”
