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By Menaka Doshi
India’s largest engineering and development firm Larsen & Toubro Ltd. plans to take a position as a lot as $12 billion over the subsequent 5 years, a 3rd of which can go towards increasing its clear vitality enterprise.
The corporate intends to construct 2-3 million tonnes of inexperienced hydrogen and ammonia capability with an funding of near $4 billion. L&T has approached some coastal states in India to accumulate 500-1,000 acres of land for hydrogen amenities, Chief Govt Officer SN Subrahmanyan stated in an interview in Mumbai. He’ll take cost as group chairman in October when veteran AM Naik retires.
The hydrogen foray begins with the manufacture of electrolyzers in December that might be powered utilizing renewable vitality from ReNew Energy Personal Ltd. to provide inexperienced hydrogen on the Indian Oil Corp. refinery in Panipat. The venture will develop to extra IOC refineries and different L&T prospects.
The Mumbai-based agency joins massive Indian teams together with Reliance Industries Ltd. and Adani Enterprises Ltd. with inexperienced hydrogen bets because the world races to chop carbon emissions. Nevertheless, large-scale inexperienced hydrogen manufacturing isn’t viable at present costs, and cheaper electrolyzer and renewable vitality costs are key to controlling prices.
“You’ll be able to’t carry on constructing capability if tariffs don’t come down,” Subrahmanyan stated, including that L&T would velocity up its investments if tariffs drop.
L&T Vitality Inexperienced Tech, a unit of the conglomerate, will execute the clear vitality technique and over time might develop into gasoline cells, grid batteries and hydrogen merchandising. The corporate will think about choices to monetize the unit, Subrahmanyan stated.
In the meantime, L&T’s realty enterprise is growing almost 28 million sq. ft in new amenities. That and growth of the primary engineering and development enterprise will price as a lot as $8 billion over 5 years, Subrahmanyan stated. That’s almost twice the common annual funding. The group reported $23 billion in income within the 12 months ended March and its shares have gained 26% in 2023, beating an 8% achieve within the benchmark index.
First Printed: Aug 09 2023 | 1:14 PM IST
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