India’s ambitions to decarbonize heavy industry and diversify its clean energy portfolio took a strategic step forward this week, as Larsen & Toubro (L&T) has secured land in Kandla, Gujarat for developing green hydrogen and ammonia production facilities.
The move signals the engineering giant’s deepening commitment to emerging clean energy technologies, including small modular reactors (SMRs), as it positions itself at the nexus of infrastructure, manufacturing, and energy transition.
The site acquisition adds momentum to L&T’s efforts to build out a vertically integrated green hydrogen business, from electrolyser manufacturing to engineering, procurement and construction (EPC) services for global projects. The announcement comes as the Indian government intensifies efforts under its National Green Hydrogen Mission, which targets 5 million tonnes of annual green hydrogen production by 2030 and $100 billion in investment.
Addressing shareholders at the company’s annual general meeting, Chairman and Managing Director S.N. Subrahmanyan confirmed that electrolyser manufacturing is already underway—a critical capability in a market where supply bottlenecks and import dependence have hampered project rollouts globally.
L&T’s green hydrogen ambitions are being channeled through a dedicated subsidiary, L&T Green Energy Kandla Pvt Ltd, which will oversee project development at the Kandla site. The location offers logistical advantages due to its proximity to port infrastructure and access to renewable power from Gujarat’s rapidly expanding solar and wind capacities—both prerequisites for producing hydrogen via water electrolysis powered by clean energy.
Beyond hydrogen, L&T is also laying the groundwork to participate in the global small modular reactor (SMR) market. The company received a significant regulatory milestone with formal approval from the U.S. Department of Energy to transfer SMR technology to India. Only three Indian firms have been cleared for this transfer, positioning L&T to play a leading role in India’s nascent civilian nuclear expansion beyond traditional large-scale reactors.
India’s interest in SMRs stems from their modularity, smaller land footprint, and load-following capability—factors seen as well-suited for industrial decarbonisation and grid stability in a renewables-heavy future. While global deployment remains limited, pilot projects in Canada, the U.S., and Eastern Europe are expected to inform regulatory and technical models that India could adopt.
L&T’s ambitions are not confined to domestic markets. The company emphasized its capability to execute EPC projects in green hydrogen, ammonia, and methanol across global markets—potentially tapping into export-led demand from the EU, Japan, and South Korea, where hydrogen import strategies are evolving in parallel with domestic capacity-building.
L&T’s announcement arrives amid a wave of activity in India’s hydrogen sector. Public sector enterprises such as NTPC and Indian Oil have initiated pilot projects, while private players like Reliance Industries and Adani Group have declared multi-billion dollar green hydrogen plans. L&T’s advantage may lie in its engineering pedigree and infrastructure execution capacity—both critical as projects scale from pilot to commercial deployment.
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