L&T to Set Up ₹40,000-Crore Green Hydrogen and Ammonia Plant in Paradip
Project to boost Odisha’s role in global green fuel supply chain, targeting exports to Europe and Asia
Bhubaneswar : In a major push towards India’s clean energy transition, Larsen & Toubro’s subsidiary L\&T Energy GreenTech has announced plans to establish a green hydrogen and green ammonia plant in Paradip, Odisha, with an investment of around ₹40,000 crore.
The announcement was made by company CEO Derek M. Shah, who said the Paradip project will have an annual production capacity of 1.8 million tonnes, making it one of the largest of its kind in the country. Along with Paradip, a similar project will be set up at Kandla in Gujarat, both with nearly identical investment and output capacities.
Strategic Location and Green Corridors
Explaining the choice of Paradip as a location, Shah pointed out that global shipping routes are undergoing a transition with the emergence of green corridors. Paradip is strategically positioned on one such route — linking the Indian coast to Singapore and Europe’s Rotterdam port.
“Within a short time, stricter regulations for sustainable shipping will come into effect. The demand for green fuels like hydrogen and ammonia is expected to rise sharply, and we are preparing to be ready for that transition,” Shah said.
Export-Oriented Production
L\&T Energy GreenTech plans to primarily use the Paradip facility for exports of green hydrogen, green ammonia, and their derivatives. The company sees Europe as the largest current market, given the continent’s ambitious decarbonization goals and reliance on clean fuels.
Beyond Europe, the company is eyeing significant export opportunities in Japan, South Korea, and Singapore, where governments and industries are investing heavily in hydrogen adoption. The Middle East is also a target market, with growing demand for alternative fuels to diversify its energy mix.
India’s Emerging Green Fuel Hub
The establishment of large-scale green hydrogen and ammonia plants aligns with India’s National Green Hydrogen Mission, which aims to position the country as a global leader in renewable hydrogen production. The Paradip project not only strengthens Odisha’s role in this strategy but also places India at the center of the global green shipping and fuel supply chain.
Industry analysts believe that Paradip’s port infrastructure, industrial base, and proximity to international shipping routes make it a natural choice for such investments. The project is also expected to generate employment, boost ancillary industries, and create a new export avenue for the state.
Expanding India’s Global Footprint
With both Paradip and Kandla projects moving forward, L\&T Energy GreenTech will be among the first Indian companies to operate on this scale in the global green fuel sector. By focusing on exports, the company seeks to bridge the gap between rising international demand and India’s renewable energy potential.
“The transition to green fuels is no longer optional — it is a necessity. With Paradip and Kandla, we are ensuring India is not just a participant but a key supplier in the global clean energy economy,” Shah added.
The Paradip green hydrogen and ammonia plant is expected to significantly contribute to India’s renewable energy exports while reinforcing Odisha’s status as an emerging green industrial hub.
