Larsen & Toubro (L&T) is set to begin commercial operations at its first electrolyser factory, with the formal announcement and inauguration expected soon.

The factory, located at L&T's Hazira facility, has an initial production capacity of 150-200 megawatts (MW), marking the engineering giant’s entry into electrolyser manufacturing.

The electrolysers, developed in collaboration with French company McPhy, are key components in the production of green hydrogen (H2). The facility, built with an investment of ₹500 crore, will initially supply electrolysers to a mix of Indian and international markets, with a 70:30 distribution ratio.

L&T’s move into electrolyser production aligns with a broader trend among major Indian conglomerates. Reliance Industries (RIL) and Adani Enterprises (AEL) are also developing electrolyser manufacturing capabilities as part of their new energy ecosystems. RIL’s solar PV factory is expected to be operational by the end of this year, while Adani recently commissioned a test laboratory for its electrolyser facility.

As demand for green hydrogen grows, experts note that India will need more H2 projects in advanced stages of development to fully absorb the manufacturing capacity for electrolyser production.