L&T Steps into Europe's Clean Energy Market with Hitachi

Engineering and construction major Larsen & Toubro (L&T) has secured a key role in the $33-billion North Sea power project led by Dutch grid operator TenneT, in partnership with Hitachi Energy. Announced on Thursday, the deal marks a significant step for L&T in Europe’s growing clean energy market.

Under the agreement, L&T will manage and install high-voltage direct current (HVDC) transmission systems, while Hitachi Energy will supply the main electrical equipment. The consortium will deliver six HVDC projects, each with a capacity of 2 gigawatts, as part of TenneT’s offshore grid expansion.

Analysts at PhillipCapital called the development a “key positive” for L&T, estimating potential business worth ₹300–350 billion over the next five to six years. L&T was chosen to replace Petrofac, which exited the contract due to financial issues. The original framework, between Hitachi and Petrofac, was valued at $8.4 billion.

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About 55–60% of the project involves Hitachi’s equipment, while L&T will handle engineering, procurement, construction (EPC), and integration work. This positions L&T among leading global EPC players in offshore grid projects.

Commenting on the development, S N Subrahmanyan, chairperson & managing director, L&T, said: “This milestone marks a proud moment for L&T as we deepen our engagement in the global clean-energy landscape. Partnering with TenneT and Hitachi Energy for this pioneering programme underscores the confidence our customers place in L&T’s growing capability to execute complex, technology-intensive infrastructure projects.”

TenneT’s $33-billion investment spans 14 offshore grid connections across the German and Dutch North Sea, designed to transmit 40 GW of wind power to onshore grids by 2031. With this project, L&T’s international order book, now at ₹6.67 trillion, expands further in the clean energy and transmission segment.