Larsen & Toubro (L&T) is betting big on green hydrogen—really big. The engineering conglomerate plans to pour up to $12 billion into strategic investments over the next five years, with a whopping $4 billion earmarked specifically for green hydrogen and ammonia projects. That’s not pocket change. Earlier announcements pegged the green-energy investment at a more modest $2.5 billion, but apparently someone at L&T headquarters decided to go all-in.
The company isn’t just throwing money around for show. They’re targeting 2-3 million tonnes of annual production capacity and hunting for massive 500-1,000 acre land parcels along India’s coast. Perfect for those hydrogen hubs they keep talking about. Build it, own it, operate it—that’s their mantra. Just ask Indian Oil Corporation, who signed up for a 25-year supply deal from L&T’s Panipat plant. Talk about commitment issues.
Manufacturing muscle matters too. L&T is setting up electrolyser production at Hazira, Gujarat by late 2025. Why buy when you can make your own, right? They’ve also buddied up with ITOCHU for a 300,000-tonne green ammonia project in Kandla. Strategic partnerships—very corporate, very smart. CEO S.N. Subrahmanyan has personally confirmed the investment strategy for the company’s ambitious clean energy push.
The tech side isn’t being neglected either. High-pressure alkaline electrolysers, thermal energy storage, concentrated solar power—they’re collecting technologies like kids collect trading cards. Add some AI for plant optimization, and voilà! The future! This approach could deliver capacity factor advantages similar to geothermal energy, which operates at 96% efficiency regardless of weather conditions.
L&T’s commercial strategy targets the usual suspects: refineries, fertilizer producers, and other heavy industries that can’t easily go green. The company is urging the Indian government to implement a systematic policy framework for long-term growth in the sector. The company also plans to cash in by selling project-level equity or minority stakes. Smart move—let others share the risk while keeping control.
Will this massive green gamble pay off? The company certainly thinks so. But $4 billion is serious money, even for L&T. If hydrogen doesn’t take off as expected, that’s one expensive lesson in renewable energy economics.
References
- https://chemindigest.com/lt-outlines-12-billion-investment-plan-for-next-five-years/
- https://www.whalesbook.com/news/English/renewables/LandT-Fuels-Green-Hydrogen-Dream-Policy-Push-and-dollar25B-Investment-to-Ignite-Indias-Global-Energy-Future/692f0557d7b55073abf528ed
- https://markets.financialcontent.com/wral/article/predictstreet-2025-12-16-larsen-and-toubro-limited-engineering-indias-future-globally
- https://www.ainvest.com/news/strategic-positioning-industrial-infrastructure-energy-transition-pathway-long-term-growth-2510/
- https://www.larsentoubro.com/pressreleases/2025-07-21-lt-energy-greentech-to-establish-india-s-largest-green-hydrogen-plant
- https://www.larsentoubro.com/pressreleases/2025-03-24-lt-energy-greentech-and-john-cockerill-energy-collaborate-to-explore-specific-green-power-technologies
- https://www.larsentoubro.com/pressreleases/2025-08-13-lt-energy-greentech-partners-with-japans-itochu-for-green-ammonia-project
- https://www.lntgreen.com
- https://bioenergytimes.com/india-needs-long-term-framework-to-scale-up-green-hydrogen-and-ammonia-lt/
