Larsen & Toubro (L&T), through its wholly-owned subsidiary L&T Energy GreenTech Ltd (LTEG), has made a landmark announcement on July 21, 2025, revealing plans to build India’s first and largest green hydrogen plant. The facility will be established at the Indian Oil Corporation Ltd (IOCL) Panipat Refinery in Haryana, and will represent a major leap forward for India's energy transition, sustainability goals, and industrial decarbonisation agenda.

This upcoming green hydrogen plant will be developed under a Build-Own-Operate (BOO) model. The facility will have the capacity to supply 10,000 tonnes of green hydrogen annually to IOCL over a 25-year period, thereby supporting the Government of India’s National Green Hydrogen Mission — a strategic initiative aimed at making India a global hub for green hydrogen production and usage.

Pioneering a Cleaner Future

The hydrogen produced will be generated using high-pressure alkaline electrolysers that will be manufactured in Hazira, Gujarat, at L&T Electrolysers Ltd’s state-of-the-art plant. The Panipat facility will operate 24/7 using renewable energy sources, ensuring zero-emission hydrogen production, and fully aligning with IOCL’s broader decarbonisation goals.

This development not only strengthens L&T’s long-standing relationship with IOCL, one of India's leading energy companies, but also solidifies L&T’s leadership in executing large-scale, sustainable energy infrastructure projects. It marks LTEG's official entry into the green hydrogen space as a serious and capable player with end-to-end execution capabilities.

Strategic Significance in India’s Net-Zero Journey

The announcement comes at a crucial time when India is accelerating efforts to transition to clean energy alternatives. Green hydrogen — produced from water using renewable electricity — is expected to play a pivotal role in decarbonising hard-to-abate sectors such as oil refining, steel production, and fertiliser manufacturing. L&T’s project is likely to set an industrial benchmark in India’s emerging hydrogen economy.

This project also places India firmly on the global map for clean hydrogen innovation, as the scale, delivery model, and indigenous technological integration distinguish it from smaller or pilot projects in other regions.

Statements from Leadership

Mr. Subramaniam Sarma, Deputy Managing Director & President, L&T, highlighted the strategic and symbolic importance of the initiative:

“The decision to set up India’s maiden green hydrogen plant validates our strategy to lead the nation’s energy transition. This long-term project not only deepens our partnership with IOCL but also reinforces our capability to deliver large-scale clean energy solutions.”

He emphasized that L&T's proactive leadership in this domain will catalyse greener industrial operations across India.

Mr. Derek Shah, Head – Green Manufacturing & Development at L&T, emphasized the technical depth and end-to-end value proposition brought by L&T:

“This project reflects our end-to-end green energy capabilities — from electrolyser manufacturing to execution and operation. With cutting-edge technology and a skilled team, we are confident of delivering a high-performance, zero-emission plant that sets new industry benchmarks.”

He also drew attention to the project’s alignment with the Aatmanirbhar Bharat mission, noting that locally manufactured electrolysers will serve as the cornerstone of India’s self-reliant clean energy ecosystem.

Technology Backbone: Electrolysers from Hazira

At the heart of this project lies a sophisticated alkaline electrolyser technology. Unlike traditional electrolysis systems, high-pressure alkaline electrolysers offer scalability, energy efficiency, and cost competitiveness — three essential components required for long-term viability in green hydrogen production.

The electrolysers will be manufactured by L&T Electrolysers Ltd at their Hazira plant, one of India’s most advanced clean-tech manufacturing hubs. This initiative also helps create backward integration in India’s green hydrogen supply chain, reducing reliance on imports and enhancing technological sovereignty.

Policy and Market Context

India’s National Green Hydrogen Mission, launched in 2023, envisions 5 million tonnes of green hydrogen production per year by 2030, supported by domestic manufacturing of electrolysers, incentives for industrial use, and cross-sectoral adoption. L&T’s Panipat project will contribute substantially to this mission and is expected to spur further industrial interest in setting up green hydrogen assets.

Additionally, IOCL’s decision to contract green hydrogen for a 25-year duration shows strong intent to replace grey hydrogen (derived from fossil fuels) with cleaner alternatives, supporting India’s target to become carbon neutral by 2070.

L&T Energy GreenTech: The New Vanguard

L&T Energy GreenTech (LTEG) is strategically positioned as L&T’s flagship clean energy arm, focusing on:

• Development of green hydrogen and its derivatives

• Manufacturing of key green energy components

• EPC (Engineering, Procurement & Construction) solutions for sustainable infrastructure

Through this triple-pronged approach, LTEG is poised to unlock value across the entire green energy chain.

Looking Ahead

The announcement is likely to have significant ripple effects across India’s energy, industrial, and infrastructure sectors. Some expected outcomes include:

• Acceleration of other hydrogen projects in public and private sectors

• Boost in indigenous manufacturing of clean energy technology

• Job creation in the emerging hydrogen economy

• Potential for export of hydrogen or its derivatives in the future

This bold move by L&T could catalyse global partnerships, drive investment flows, and inspire public-private collaborations in clean energy infrastructure — all necessary components for India's net-zero roadmap.

Conclusion

L&T’s decision to build India’s first and largest green hydrogen plant at IOCL’s Panipat refinery is a game-changing development in the country’s clean energy transformation. It not only aligns with national sustainability goals but also showcases indigenous capability, technological readiness, and visionary leadership in the clean-tech space.

As India works toward becoming a global powerhouse in green hydrogen, initiatives like these will be crucial in turning policy into action, ambition into assets, and vision into verifiable impact.

This project reinforces L&T’s commitment to innovation, sustainability, and national progress, while laying the groundwork for a greener and more self-reliant India.

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