L&T gains nearly 4% on commissioning its first Hydrogen electrolyser

The electrolyser will now undergo rigorous testing in the coming weeks to optimise its performance, the company said

Shares of Larsen & Toubro (L&T) are up 3 per cent to Rs 3,600 on the BSE in Friday’s intra-day trade after the company commissioned its first indigenously manufactured electrolyser at the Green Hydrogen plant in Hazira, Gujarat.

L&T Electrolysers, a newly incorporated entity of L&T, plans to leverage its upcoming gigascale facility in Hazira to meet the growing demand for green hydrogen, maximising product localization through enhanced local supply chain, and automation for cost-competitiveness.
 

Featuring a rated power capacity of 1 MW (expandable to 2 MW), this electrolyser can produce 200 Nm3/Hr of hydrogen. It is equipped with two stacks and an Electrolyser Processing Unit (EPU) ML-400, which is indigenously manufactured and assembled, adhering to the latest international standards, and offers exceptional flexibility and thermal stability.
 

The electrolyser will now undergo rigorous testing in the coming weeks to optimise its performance, and in turn, paving the way for full-fledged manufacturing of electrolysers, L&T said in a statement.
 

L&T Electrolysers has been allocated a significant 300 MW/annum capacity under the Production Linked Incentive (PLI) of the National Green Hydrogen Mission, launched by Government of India’s Ministry of New and Renewable Energy (MNRE) and implemented by the Solar Energy Corporation of India (SECI). This allocation underscores L&T Electrolysers’ potential to emerge as a key player in electrolyser manufacturing, the company said.
 

At 12:55 pm; L&T was trading 3.6 per cent higher at Rs 3,603.95, as compared to 1.4 per cent rise in the S&P BSE Sensex. The stock had hit a record high of Rs 3,738.90 on January 30.
 

According to a technical analyst at ICICI Securities, the Capital Goods index has resumed an uptrend after undergoing a healthy retracement. In tandem with the benchmark, L&T (which has been the leader of ongoing secular up move) witnessed supportive efforts from the lower band of eight months rising channel, exhibiting elevated buying demand that augurs well for the next leg of up move.
 

The brokerage firm expects L&T to regain upward momentum and gradually challenge the life highs paving the way towards Rs 3,840 as it is 123.6 per cent external retracement of February correction (Rs 3,738- Rs 3,263).
 

Meanwhile, according to global brokerage firm CLSA, L&T is set to beat its own and their order inflow estimates led by larger Indian orders including bullet train, defence and private capex in March quarter (Q4FY24).
 

“While markets are worried Aramco’s capex, we see it as not giving up on its transition fuel capex, & expect the placing orders on gas capex to execute the third expansion phase of the Master Gas System network (MGS-3). L&T is expected to win package 8 of the MSG-3 of laying 56-inch east-west gas pipeline, covering 480km, which opens scope for more ME order inflow in the remaining month of Q4. L&T has already secured orders worth US$3.9 billion in the Jafurah project,” CLSA said in a report.