L&T acquires land at Kandla port, eyes more in Odisha for export-oriented green power projects

“In order to get into the export or even domestic market as a (green energy project) developer, we need land. So we are positioning ourselves to acquire  land parcels, so that whenever the opportunity arises, we are not searching for land then,” Sarma said. 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.

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

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 focused 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.

On January 4, 2024, the union cabinet approved the National Green Hydrogen Mission with a total initial outlay of Rs 19,744 crore. The country wants to develop manufacturing capacity in clean energy and emerge as a global hub for the same. Amid the global push towards energy transition, countries are looking at ways to make green hydrogen lucrative and atract private sector investment.

India’s success in this space hinges on how government incentives are planned and executed, and how the country manages to create demand locally.