It remains to be seen whether this is just a case of sheep behavior or the company is keen on this greenfield segment of India's economy
Everyone who is anyone in the Indian corporate world appears to be moving towards the sustainable energy space. Be it Reliance, the Adani Group, JSW Group or the early movers like Mahindras, most large companies in India are chalking out plans to enter the green energy space. The latest is L&T which says it would invest up to $2.5Bn in the sector.
Published media reports quoted a company official to suggest that L&T would be pumping in the funds in green hydrogen fuel as well as in manufacturing critical components like electrolyzers and advanced cell batteries. In addition, the company is also building capabilities that would allow them to take up EPC contracts for space projects.
Part of a focused approach
A report published in the Hindu BusinessLine quoted Subramanian Sarma, whole-time director and senior executive VP (Energy) to suggest that the company hopes to be part of the global effort to reduce carbon emissions and over the next two to three years, this industry could witness a major investment momentum. “We will invest $2.5bn over 3-4 years,” he added.
L&T had commissioned its first green hydrogen plant at Hazira last week. The plant is designed for an electrolyser capacity of 800kW that comprises both alkaline (380 kW) and polymer electrolyte membrane (PEM) (420 kW) technologies. It would curtail carbon footprint by 300 tonnes per annum, the company said.
Preparations are afoot already
Sarma also revealed that they are preparing for a big shift into the clean and green energy space for which a joint venture is already in place with Indian Oil Corporation and ReNew in order to develop green hydrogen. The company proposes to make electrolyzers and large plants in the future via this joint venture.
The company has also set up a dedicated team that would focus on expanding business in the offshore wind farms vertical as part of its renewable energy projects.
Offshore wind farming is done commonly in Europe and a big part of their renewable energy comes from it. There is a lot of study being undertaken in the area and likely alongside the coasts of Gujarat and Tamil Nadu, the wind velocity is very high.
Currently, 15 to 20 people and a dedicated team with experienced people are working on it and once we get the opportunities, we can ramp up, Sarma said.