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 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.
Joint venture to develop green hydrogen projects
Indian Oil Corp Ltd, Larsen and Toubro 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.
"We are in joint venture with two other reputed companies and we intend to be there in the space of development and in our parlance, development means we will be creating assets through our own investments," he stressed.
The company, he said, will also create these green assets and will be in this space in the entire value chain.
Leveraging its offshore expertise, the company's hydrocarbon business is developing a part of the team to focus on the emerging business opportunities in Offshore Wind Farms, which will address renewable energy requirements and balance the portfolio.
"Currently, it is a team of 15-20 people but very experienced and knowledgeable. Once we get the opportunity, we can quickly ramp up between power, hydrocarbon and within the energy segment. We have a lot of capacity which we can add to this," Sarma said.