Mumbai: India will need a clear and long-term policy framework to rapidly expand green hydrogen and ammonia production and attract global investment, according to a senior official at Larsen & Toubro (L&T), reports The Hindu businessline.
L&T’s subsidiary is currently building a green hydrogen plant at Indian Oil Corporation’s Panipat refinery and is evaluating more projects in the sector.
Subramanian Sarma, Deputy Managing Director & President of L&T Group, said that India must focus on creating demand through defined procurement mechanisms for industries such as refining, fertilizers, steel and heavy mobility. He said early-stage support for electrolyser manufacturing and green molecule projects, simplified access to round-the-clock renewable power, faster grid connectivity, smoother approvals and a transparent long-term policy structure will be key for India to position itself as a competitive green hydrogen hub.
L&T had announced in 2022 that it planned to invest $2.5 billion in green energy over three to five years.
Sarma said the company’s capital allocation strategy continues to follow long-term global energy trends. He noted that L&T’s hydrocarbon engineering business remains strong and profitable, and the company is investing in digital systems, modularisation, talent and safety to maintain its edge. Future investments, he said, will grow gradually, with a focus on strengthening long-term capabilities in areas such as green hydrogen, electrolysers, offshore wind components, and grid and storage solutions.
It was earlier reported that L&T may offer a minority stake to an international offtaker for its green hydrogen and ammonia projects in India. The company is in talks with global firms that see India as a potential production base for these fuels.
Sarma said the company’s long-term plan is to remain active in the core hydrogen engineering, procurement and construction (EPC) segment while expanding into low-carbon and green technologies. He described the strategy as a dual approach—enhancing traditional hydrocarbon EPC strengths while growing in renewables, carbon capture, blue and green hydrogen and ammonia, and both onshore and offshore wind. He said the shift is not a move away from hydrocarbons but an evolution in which both conventional and green solutions will operate side by side.
L&T is also working on integrating clean energy systems covering generation, storage, transmission and distribution. Sarma said the company is expanding capabilities in battery energy storage systems, pumped storage, and hybrid solar-wind combinations supported by digital tools. It is also adopting forecasting systems, energy management platforms, and AI/ML-based optimisation to help renewables take on more baseload responsibility. He said L&T has already launched pilot projects combining hybrid generation with battery storage and digital controls.
Sarma said West Asia is expected to be a major contributor to L&T’s international business in the coming years. The company anticipates growth in both domestic and overseas markets over the next three to five years, with faster expansion likely in West Asia.
He said Saudi Arabia, in particular, offers strong opportunities across hydrocarbons, clean energy, grid systems and infrastructure. By 2030, Sarma expects Saudi Arabia to become one of L&T’s most significant markets with a robust pipeline of projects across conventional and transition sectors.
