Infrastructure major Larsen & Toubro (L&T) is actively evaluating new business opportunities in the coal gasification sector. This strategic move aligns with India’s broader goals of energy security and industrial development, balancing traditional resource utilization with the ongoing global energy transition.
Subramanian Sarma, L&T’s Deputy Managing Director & President, emphasized that while coal gasification fits into the company’s evolving energy landscape, their approach will remain cautious. “Like in any new area, we will be selective and disciplined in how we participate,” Sarma stated.
The initiative comes at a time when India is looking to diversify its energy mix and reduce its reliance on imported fuels. Coal gasification converts chemical energy from coal into syngas, which can then be used to produce electricity, hydrogen, and synthetic fuels, offering a relatively cleaner alternative to direct coal combustion.
However, L&T is not shifting its core focus. The company’s primary growth strategy remains anchored to its traditional core businesses alongside high-potential green energy frontiers, including green hydrogen and sustainable fuels. By exploring coal gasification, L&T aims to bridge the gap between current fossil fuel dependencies and a zero-emission future, ensuring they are well-positioned for the next generation of industrial demand.
With a disciplined capital allocation strategy, the engineering giant intends to carefully vet upcoming projects in this domain, ensuring they deliver viable financial returns while supporting the nation’s strategic energy roadmap.
