L&T Energy Secures Green Hydrogen Project for IOCL in Panipat

In a major boost to India’s green energy ambitions, L&T Energy GreenTech, a wholly-owned subsidiary of Larsen & Toubro (L&T), has secured the contract to develop and operate a green hydrogen production plant for Indian Oil Corporation Ltd (IOCL) at its Panipat refinery in Haryana.

The plant, once completed, will have an annual production capacity of 10,000 tonnes. This is expected to be one of the largest green hydrogen projects in the country.

The contract was awarded after a competitive bidding process in which L&T emerged as the lowest bidder, offering a green hydrogen supply price of INR 397 per kilogram. The bid narrowly beat NTPC Renewable Energy, which quoted IR 398/kg, and ReNew, which submitted a price of INR 407/kg.

The project will be developed under a Build-Own-Operate (BOO) model over a period of 30 months. L&T will design, finance, construct, and operate the facility, supplying green hydrogen to IOCL for a duration of 25 years. The plant is required to operate continuously, 24x7, 365 days a year, using electrolysis powered exclusively by renewable energy, in compliance with India’s definition of green hydrogen

This deal aligns with the government’s National Green Hydrogen Mission and long-term decarbonisation goals. Green hydrogen, produced without any carbon emissions, is expected to play a central role in replacing fossil fuels across industries and transport.

With decades of expertise in engineering, procurement, and construction (EPC) across complex infrastructure projects, the company is now positioning itself as a leader in India’s hydrogen economy.

Industry analysts noted that this project will not only support IOCL’s efforts to decarbonise its refining operations but will also serve as a model for future large-scale green hydrogen deployments across the country.

It may be noted that in April 2025, L&T Energy GreenTech incorporated a new wholly-owned subsidiary, L&T Green Energy Kandla Pvt Ltd, to focus on the development of green hydrogen and its derivatives, including green ammonia.