Archive · 12 Oct 2026
L&T and Thermax Compete in India’s Green Hydrogen Race
India wants to make much more hydrogen using renewable electricity.
The government has offered support and assigned companies plans to build hydrogen-making machines called electrolysers.
L&T makes alkaline electrolysers and is involved in a long-term hydrogen supply project for an Indian Oil refinery.
Thermax is working with partners on alkaline machines and a different type that uses heat and steam.
The two companies have different technologies and projects, but their hydrogen businesses are still hard to judge from public financial results.
Thermax expects hydrogen-related revenue to begin in FY28, but that is a forecast, not a guarantee.
The main challenge is turning announced plans into signed orders, operating equipment and profitable sales.
The article says investors should look for evidence of progress rather than rely only on industry growth forecasts.
India’s National Green Hydrogen Mission has an outlay of ₹19,744 crore and targets 5 million tonnes of annual green hydrogen production by 2030.
By March 2026, the government had awarded 3 GW per year of electrolyser manufacturing capacity; around 8,000 tonnes per year of hydrogen production capacity had been commissioned by February 2026.
L&T makes high-pressure alkaline electrolysers at Hazira and has a 25-year project to supply Indian Oil’s Panipat refinery with 10,000 tonnes of green hydrogen annually.
Thermax’s hydrogen strategy combines alkaline systems with HydrogenPro and developing solid oxide electrolysis technology with Ceres Power.
Neither company separately reports electrolyser financial results, leaving utilisation, hydrogen-specific orders, revenue and profitability difficult to assess.
- Who
- Larsen & Toubro (L&T), Thermax, and companies participating in India’s green hydrogen and electrolyser sector.
- What
- The article compares L&T’s and Thermax’s electrolyser technologies, projects, commercial prospects and investment risks.
- When
- The article cites developments and company data through October 2026, including government awards reported by March 2026.
- Where
- India, including L&T’s Hazira facility in Gujarat and its hydrogen projects at Panipat and Kandla.
- Why
- India is pursuing green hydrogen production, but manufacturers must turn awarded capacity and technology plans into customer orders and profitable operations.
Reasons for optimism
Risks and uncertainties
L&T’s integrated business
Reasons for optimism
L&T combines electrolyser manufacturing with hydrogen project development and has a long-term Panipat supply project.
Risks and uncertainties
The project’s returns are unclear, and L&T does not separately disclose electrolyser revenue, utilisation or profitability.
Thermax’s technology options
Reasons for optimism
Thermax’s alkaline partnership offers a route to market, while SOEC technology may use less electricity where suitable heat is available.
Risks and uncertainties
SOEC remains at the pilot-development stage, and stated efficiency advantages do not establish lower total costs or commercial success.
India’s manufacturing opportunity
Reasons for optimism
Government incentives and awarded manufacturing capacity could support growth in domestic electrolyser production.
Risks and uncertainties
Awarded capacity is not the same as operating factories or firm demand; delays, low utilisation, pricing pressure and supply-chain dependence could weaken returns.
- National Green Hydrogen Mission outlay
- ₹19,744 crore, including ₹17,490 crore for incentives covering electrolyser manufacturing and hydrogen production.
- India’s 2030 production target
- 5 million tonnes per annum of green hydrogen.
- Manufacturing capacity awarded
- 3 GW per annum to 15 companies by March 2026.
- Commissioned production capacity
- Around 8,000 tonnes per annum by February 2026.
- L&T Panipat project
- A 25-year project to supply Indian Oil’s Panipat refinery with 10,000 tonnes of green hydrogen annually.
- Thermax technology partnerships
- HydrogenPro for alkaline electrolysis systems and Ceres Power for solid oxide electrolyser cell technology.
- Thermax revenue outlook
- Management expected hydrogen-related revenue to begin in FY28; this was an expectation, not confirmed revenue.