L&T to build India’s maiden green hydrogen plant at IOC's refinery

Green hydrogen is essentially the hydrogen gas produced by splitting water using renewable energy sources. The project marks IOC's entry into the green hydrogen space, with India's largest-ever green hydrogen project to date.

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26 Aug, 2025 12:21

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L&T Energy GreenTech, a subsidiary of Larsen & Toubro will be setting up India’s maiden green hydrogen plant at Indian Oil's Panipat refinery in Haryana on a build-own-operate basis, a company filing said on July 21.

The plant will run round-the-clock using renewable energy to supply 10,000 tonnes of green hydrogen annually to IOC for 25 years, a crucial step in India's National Green Hydrogen Mission. This also aligns with IOC’s strategy to decarbonise refining operations and add to India's net-zero ambitions. At the plant, green hydrogen will be produced using high-pressure alkaline electrolysers, made at Hazira-based L&T Electrolysers. The step sets up LTEG to be a key player in the green hydrogen ecosystem, setting a precedent for industrial-scale adoption across refineries, fertilisers, and other sectors.

Subramaniam Sarma, Deputy Managing Director & President, L&T said the project "not only deepens our partnership with IOC but also reinforces our capability to deliver large-scale clean energy solutions."

Green hydrogen is essentially the hydrogen gas produced by splitting water using renewable energy sources. The project marks IOC's entry into the green hydrogen space, with India's largest-ever green hydrogen project to date. The project is slated to be commissioned by December 2027 and the green hydrogen produced here will replace fossil-derived hydrogen in IOC's refinery operations, reducing carbon emissions.

Previously, IOC had cancelled two tenders, following very little interest from the industry to develop the project. The tender was first floated on September 2024, and the deadline was pushed twice to January 2025, on participating companies' insistence.

"This project reflects our end-to-end green energy capabilities — from electrolyser manufacturing to execution and operation. With cutting-edge technology and a skilled team, we are confident of delivering a high-performance, zero-emission plant that sets new industry benchmarks," said Derek Shah, Head – Green Manufacturing & Development, L&T.

Shares of L&T are sharply off early lows, in line with the broader market rebound, while shares of IOC are trading flat on July 21.