L&T to Increase Electrolyser Power Capacity to 4 MW

Larsen & Toubro (L&T), a leading Indian conglomerate, plans to scale up its electrolyser's power capacity to 4 megawatts (MW) as it targets domestic orders for FY25-26. The move follows the company's successful indigenous manufacturing of its first 1-MW electrolyser in March at its green hydrogen plant in the A M Naik Heavy Engineering Complex, Hazira, Gujarat.

"We are currently testing the electrolyser under various conditions to evaluate its strength, features, performance, and other functionalities," said R Shankar Raman, recently appointed President, Whole-time Director, and Chief Financial Officer of L&T. "Once the product proves stable and competitive, we will scale up the manufacturing of electrolysers. Our next phase involves increasing the capacity of the electrolyser stack to 4 MW, for which we will work closely with McPhy Energy."

According to Raman, the product testing and improvement phase will continue through FY25, with domestic orders expected in FY25-26. L&T also has plans to explore the international market for its electrolyser business during the 2026-2031 timeframe.

To support its expansion, L&T has been granted a Production Linked Incentive (PLI) for 300 MW through the National Green Hydrogen Mission by the Ministry of New and Renewable Energy (MNRE), implemented by the Solar Energy Corporation of India. The PLI, amounting to nearly ₹444 crore, will be used over the next five years to advance L&T's manufacturing capabilities.

L&T's growth ambitions come on the back of strong financial results. The company's consolidated net profit rose by 10% in the March quarter of FY24, reaching ₹4,396 crore compared to ₹3,986 crore in the same period last year. Additionally, the December quarter saw a significant 49.16% increase in profits, amounting to ₹2,947 crore. Revenue from operations also grew by 15% to ₹58,335 crore.

With these promising financial results and a clear vision for its green hydrogen and electrolyser business, L&T is positioning itself to be a major player in India's evolving renewable energy landscape.

HBL