L&T to invest $2.5-bn in green energy space

Hazira: Engineering major Larsen & Toubro is committed to work across the green energy value chain and plans to invest up to $2.5 billion over the next 3-4 years, a company official said. The investment of such a large scale in the green energy sector depends upon how the market evolves. The statement comes in the wake of Larsen & Toubro (L&T) planning to achieve water and carbon neutrality by 2035 and 2040, respectively.

"We are looking at $2-2.5 billion investment to start within three-four years' time," the company's whole-time director and senior executive vice-president (energy) Subramanian Sarma said.

The company which plans to move in the clean energy space in a big way aims to enter into manufacturing of key technological equipment which could be electrolysers, advanced cell batteries and fuel cells among others, L&T's Senior Vice-President and head of Green Energy Business Derek M Shah said.

"So, this is part of the value chain," he explained. The second part of the value chain, he said, is the engineering, procurement and construction (EPC) projects adding that the company plans to make a foray into large-scale EPC projects in the green energy sector. "There are multiple customers who are now coming out. Whether it is refineries or possibly there will be gas authorities, steel plants," Shah explained.

Indian Oil Corp Ltd (IOC), Larsen & Toubro (L&T) and ReNew Power have agreed to form a joint venture company to develop green hydrogen projects across the country and capitalise on the government's ambitious plans for this sector.