L&T Looks to Invest Upto $2.5 Billion In Green Energy

Engineering conglomerate Larsen & Toubro (L&T) is mulling to invest upto $2.5 billion in the coming three to four years and work throughout the value chain of green energy to create green assets. This may be aimed at realising water neutrality by 2035 and carbon neutrality by 2040.

The L&T officials have revealed the fact while considering that the large scale investments depend on the evolution of the green energy markets.

As per reports, Director and Senior Executive Vice President of Energy Segment, L&T, Subramanian Sarma has revealed that the company is mulling to invest about $2 – 2.5 billion to start within three-four years’ time.

The value chain entrance plan consists of manufacturing and EPC segments. First, L&T will get into the clean energy sector by entering the manufacturing of key technologies and equipment like electrolysers, fuel cells, advanced cell batteries etc., as informed by Derek M Shah, Senior VP and Head, Green Energy Business L&T.

Simultaneously, the company will also enter the large engineering, procurement and construction (EPC) of green projects. Shah said that many customers are now demanding this service; be it refineries or gas authorities.

In April, L&T and joined with Indian Oil Corp Ltd and ReNew Power to announce signing of an agreement for the formation of a joint venture for the development of the nascent green hydrogen sector in India. The tripartite venture represents a synergistic alliance that brings together the strong credentials of L&T in designing, executing, and delivering EPC projects.

Shah held that development means L&T is able to create green assets through its own investments.

In January this year, L&T inked a Memorandum of Understanding (MoU) with HydrogenPro, a Norwegian electrolyser technology and manufacturing company, for gigawatt-scale manufacturing of Alkaline Water Electrolysers based on HydrogenPro technology for the Indian market and other select geographies.

Subsequently, in March, L&T announced that it will develop a 245MW solar power project in Rajasthan and 35 MW (AC) photovoltaic capacity with 57MWh battery energy storage system in the Kutch region of Gujarat.