L&T creates new company for green hydrogen projects

Larsen & Toubro (L&T), one of India’s premier engineering and construction firms, has announced the establishment of a new wholly owned subsidiary—Panipat Green Hydrogen Pvt Ltd. L&T has disclosed in a regulatory filing that the new entity has been formed to spearhead green hydrogen projects specifically and related business ventures.

Green hydrogen, produced using renewable energy sources, is considered a crucial component of the global clean energy transition. With this strategic move, L&T aims to strengthen its presence in the emerging green energy sector.

In a related development, L&T also confirmed that Fitch Ratings has reaffirmed its long-term foreign and local currency issuer default ratings (IDRs) at ‘BBB+’, maintaining a stable outlook. This reflects the company’s solid financial foundation and robust credit profile.

Earlier in May this year, L&T Energy Green Tech (L&T Green) had secured a major contract from Indian Oil Corporation Ltd (IOCL) to develop a 10 kilo tons per annum (KTPA) green hydrogen production facility. The awarded green hydrogen plant will come up at IOCL’s Panipat Refinery and Petrochemical Complex in Haryana and will be executed on a build-own-operate (BOO) basis.

In the bidding, L&T Green emerged as the winning bidder, securing the entire 10-KTPA capacity at a competitive rate of Rs 397 per kilogram of green hydrogen. There were other important participants in the bidding process that would include ReNew E Fuels and NTPC Renewable Energy.

L&T had also secured land in Kandla, Gujarat, for the development of green hydrogen and green ammonia facilities, signaling its long-term commitment to clean energy infrastructure.

The Indian Government is aggressively push for green hydrogen adoption under initiatives like the National Green Hydrogen Mission, which promotes its use across sectors such as transportation and industry through pilot projects and policy incentives.