ЁЯМН $30Bn L&T Signs MoU with ACWA Power for Yanbu Green Hydrogen Hub тАУ Eyeing $410Bn Market by 2030
1. Landmark Deal
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Larsen & Toubro (L&T) тАУ a USD 30Bn Indian multinational тАУ signed an MoU with ACWA Power (Arabian Company for Water and Power Development).
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The deal covers the Renewables & Grid scope of the Yanbu Green Ammonia Project in Saudi Arabia.
2. Project Scope тАУ Yanbu Green Hydrogen Hub
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A fully integrated facility powered by renewables.
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Infrastructure includes:
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Solar PV plants
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Wind energy farms
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Battery Energy Storage Systems (BESS)
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Substations & transmission lines
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3. Global Financial Significance
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Green Hydrogen Market Size:
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2024: USD 44Bn
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2030 forecast: USD 410Bn (CAGR ~39%)
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Saudi ArabiaтАЩs edge: WorldтАЩs lowest renewable costs, ensuring high project profitability.
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L&T benefit: MoU sets stage for a multi-billion-dollar EPC contract, boosting its order book.
4. Strategic Importance
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Saudi Arabia: Positioned as a global clean energy hub bridging India тАУ Middle East тАУ Europe Economic Corridor (IMEC).
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IndiaтАЩs gain: L&T expands footprint in hydrogen EPC, contributing to IndiaтАЩs 5 MMT green hydrogen target by 2030.
5. Leadership Statements
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Marco Arcelli, CEO тАУ ACWA Power: Yanbu project shows rapid development; aims to export green ammonia to global markets.
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T. Madhava Das, Sr. EVP тАУ L&T: SaudiтАЩs competitive renewable rates + mega projects = perfect ground for Indo-Saudi cooperation.
6. Company Backgrounds
Larsen & Toubro (L&T)
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Market Value: USD 30Bn
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Order Book (FY25): тВ╣ 5.79 lakh crore (+22% YoY)
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Q1 FY26 Revenue: тВ╣ 63,679 crore (+16% YoY)
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Q1 FY26 Net Profit: тВ╣ 3,617 crore (+30% YoY)
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Global Reach: 50+ countries, 80+ years in EPC & infra
ACWA Power (Arabian Company for Water and Power Development)
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Assets Under Management: USD 60Bn+
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Portfolio: 77 projects across 13 countries
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Capacity: 44 GW power + 6.2M m┬│/day desalinated water
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Focus: Renewables, desalination, green hydrogen leadership
7. Investor Angle тАУ Why It Matters ЁЯТ╣
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Growth Opportunity: L&T EPC exposure in global giga-projects.
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Hydrogen Boom: Exports may cross USD 100Bn annually by 2030.
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Risks: Project delays, geopolitical tensions, high capex.
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Payoff: L&T becomes front-runner in global hydrogen EPC contracts.
8. L&T Stock & Order Book тАУ Key Figures
| Metric | Value | Growth |
|---|---|---|
| Order Book (FY25) | тВ╣ 5.79 lakh crore | +22% YoY |
| International Orders Share | 46% | тАУ |
| Q1 FY26 Revenue | тВ╣ 63,679 crore | +16% YoY |
| Q1 FY26 Net Profit | тВ╣ 3,617 crore | +30% YoY |
| Q1 FY26 Order Inflow | тВ╣ 94,453 crore | Record High |
| Stock Return (1 Year) | тАУ4% | Negative |
| Stock Return (3 Years) | +95% | Strong |
| Stock Return (5 Years) | +320% | Outstanding |
9. Peer Comparison тАУ Valuations
| Company | P/E (TTM) | Forward P/E | EV/EBITDA | PEG Ratio | ROE (%) | Remarks |
|---|---|---|---|---|---|---|
| L&T | ~30-32├Ч | ~32├Ч | ~20├Ч | ~1.5 | 14-16% | Premium but justified by strong order book |
| Adani Green Energy | ~98-105├Ч | ~85├Ч est. | ~45-50├Ч | >3.0 | 10-12% | High growth, very expensive |
| Tata Power | ~29-30├Ч | ~28├Ч est. | ~15-16├Ч | ~1.2 | 12-14% | Balanced play, lower risk |
| LTTS (L&T Subsidiary) | ~33-35├Ч | ~29.5├Ч | ~18-19├Ч | ~1.6 | 19-20% | High ROE, asset-light |
10. Global Impact ЁЯМО
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Yanbu Hub to supply green ammonia exports to Europe & Asia.
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Potential to reduce millions of tonnes of COтВВ annually.
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Strengthens IndiaтАЩs role in the USD 410Bn hydrogen economy.
тЪая╕П Disclaimer тАУ The Profit India
This article is for educational and informational purposes only. The Profit India does not provide investment, trading, or financial advice. Readers are encouraged to verify figures and consult a certified financial advisor before making investment decisions.
