L&T to pump in $2.5B in 3-4 years for green energy value chain venture

By Pranali Mehta  | Date: 2022-08-22

L&T to pump in $2.5B in 3-4 years for green energy value chain venture

Larsen & Toubro (L&T), an Indian engineering frontrunner, has reportedly announced its plans of investing up to USD 2.5 billion in the next 3 to 4 years in line with its commitment to work in the green energy value chain.

The statement comes along the heels of the conglomerate’s forethoughts on achieving water as well as carbon neutrality by 2035 and 2040, respectively. However, this large-scale investment in the green energy sector is dependent on the market evolution.

According to Subramanian Sarma, Whole-time Director and Senior Executive Vice-President of Energy at L&T, the team was anticipating starting with a USD 2-2.5 billion investment in three-four years.

Derek M Shah, Senior Vice-President and Head of Green Energy Business at L&T, mentioned that the company, besides planning the significant transformation in the clean energy space, is focused on entering the manufacturing of key technological equipment, like electrolysers.

According to Derek, this is part of the value chain.

It has also been reported that the second part of the value chain is the EPC (engineering, procurement and construction) projects, which will subsequently urge the company to make an incursion into large-scale EPC projects within the green energy sector.

Sources also confirm that Larsen and Toubro has joined forces with ReNew Power to form a joint venture (JV) company for developing green hydrogen projects in India while capitalizing on the ambitious plans led by the government for this sector.

L&T’s hydrocarbon business by leveraging its offshore expertise is developing a part of its team for focusing on the upcoming business avenues in Offshore Wind Farms to address the renewable energy requirements as well as balance the portfolio.

Speaking on this, Sarma hinted at the company’s capacity to quickly ramp up power, and hydrocarbon within the energy segment.

For the unversed, L&T will also be creating these green assets in this space across the entire value chain.

Source Credits:

https://economictimes.indiatimes.com/industry/renewables/lt-to-work-across-green-energy-value-chain-to-pump-in-usd-2-5-bn-in-3-4-yrs/articleshow/93689858.cms?from=mdr

About Author

Pranali Mehta     aeresearch.net

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta has dutifully walked down the slated path and worked in the chemicals industry for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience...

Read More