L&T to build India’s maiden
green hydrogen plant at IOC's
refinery
The plant will run round-the-clock using renewable energy
to supply 10,000 tonnes of green hydrogen annually to
IOC for 25 years, a crucial step in India's National Green
Hydrogen Mission.
Green hydrogen is essentially the hydrogen gas produced by splitting water
using renewable energy sources. The project marks IOC's entry into the green
hydrogen space, with India's largest-ever green hydrogen project to date.
L&T Energy GreenTech, a subsidiary of Larsen & Toubro will be
setting up India’s maiden green hydrogen plant at Indian Oil's Panipat
refinery in Haryana on a build-own-operate basis, a company filing
said on July 21.
The plant will run round-the-clock using renewable energy to supply
10,000 tonnes of green hydrogen annually to IOC for 25 years, a
crucial step in India's National Green Hydrogen Mission. This also
aligns with IOC’s strategy to decarbonise refining operations and add
to India's net-zero ambitions. At the plant, green hydrogen will be
produced using high-pressure alkaline electrolysers, made at Hazira-
based L&T Electrolysers. The step sets up LTEG to be a key player in
the green hydrogen ecosystem, setting a precedent for industrial-scale
adoption across refineries, fertilisers, and other sectors.
Subramaniam Sarma, Deputy Managing Director &
President, L&T said the project "not only deepens our partnership with
IOC but also reinforces our capability to deliver large-scale clean
energy solutions."
Green hydrogen is essentially the hydrogen gas produced by splitting
water using renewable energy sources. The project marks IOC's entry
into the green hydrogen space, with India's largest-ever green
hydrogen project to date. The project is slated to be commissioned
by December 2027 and the green hydrogen produced here will
replace fossil-derived hydrogen in IOC's refinery operations, reducing
carbon emissions.
Previously, IOC had cancelled two tenders, following very little interest
from the industry to develop the project. The tender was first floated
on September 2024, and the deadline was pushed twice to January
2025, on participating companies' insistence.
"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," said Derek Shah, Head – Green Manufacturing &
Development, L&T.
Shares of L&T are sharply off early lows, in line with the broader
market rebound, while shares of IOC are trading flat on July 21.