L&T shares gain on MoU with ACWA Power in Saudi Arabia

Shares of Larsen & Toubro (L&T) were trading on a flat note on Monday even as the firm announced that its renewables division has inked a memorandum of understanding (MoU) with ACWA Power for the renewables and grid scope of the Yanbu Green Ammonia Project in Saudi Arabia.

Larsen & Toubro stock rose nearly 0.43% to Rs 3691 on BSE today. Market cap of the firm stood at Rs 5.03 lakh crore.  However, later the stock gave up all gains and was trading 0.43% lower at Rs 3,660 on BSE. 

The MoU aims to establish a collaborative framework to design and reach optimal configurations, with a commitment by L&T to enter into an engineering, procurement, and construction (EPC) contract upon final proposal acceptance. The Yanbu Green Hydrogen Hub will be a fully-integrated facility, powered entirely by solar and wind energy, and will encompass solar PV, wind, and battery energy storage plants with associated substations and transmission lines.

T Madhava Das, Member of the Board and Senior Executive Vice President (Utilities) at L&T, stated, "We are happy to contribute to its ambitions of promoting regional and international integration of clean energy, especially along the India – Middle East – Europe economic corridor."

Marco Arcelli, CEO of ACWA Power, commented, "By developing and exporting green ammonia, we aim to support international markets in their decarbonisation efforts and pave the way for a cleaner, more sustainable world."

Last week, L&T secured orders worth up to ₹15,000 crore, including two 'large' orders and two 'significant' orders.