L&T to work with Hitachi Energy on $33 bn North Sea power project

L&T to lead EPC and installation for six HVDC systems under TenneT's $33-billion offshore grid plan, marking a major step in its global clean-energy expansion

Engineering and construction major Larsen & Toubro (L&T) on Thursday announced it has secured a “key role” to work with Hitachi Energy on a $33-billion North Sea power project by TenneT, a Netherlands-based grid operator. 

L&T will take charge of project management and installation of high-voltage direct current (HVDC) transmission systems, while Hitachi Energy will supply the core electrical equipment.

 

The Hitachi-L&T consortium will work on six HVDC projects, each with a capacity of 2 Gigawatts (Gw). 

The partnership with TenneT marks a “key positive win” for L&T, opening up a new international opportunity estimated at ₹300–350 billion over five to six years, said a report by analysts at PhillipCapital, a stock broking and financial services firm. 

 

L&T was nominated by TenneT to replace Petrofac, a global energy service provider which faced financial difficulties, in the consortium. The total value of the earlier Hitachi–Petrofac framework contract was pegged at $8.4 billion. 

About 55–60 per cent of the partnership relates to equipment supplied by Hitachi, with the remainder involving engineering, procurement, construction (EPC), and integration work, expected to be led by L&T. 

Analysts say the partnership places L&T among the top global EPC players capable of executing complex offshore grid projects.

 

The company’s entry into Europe’s energy transition market is also seen as a significant diversification of its international order book. 

“This move puts L&T in the same bracket as McDermott and Sembcorp. It is a key positive that opens a sizeable and sustainable global opportunity," the Philip Capital report noted.

 

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, one of Europe’s largest power transmission system operators, is investing around $33 billion to develop 14 offshore grid connections across the German and Dutch parts of the North Sea. These systems will collectively transmit power from 40 Gw of offshore wind farms to onshore grids by 2031.

 

The 14 projects are split among four major consortiums including GE-McDermott, Siemens Energy-Dragados, Hitachi Energy-L&T, and GE-Sembcorp. Each of the 14 grid connections will use HVDC technology to efficiently transmit electricity over long distances, minimizing energy loss. A key condition of the TenneT contracts is that core components must be manufactured within European production sites.

 

The development is expected to add value to L&T’s international EPC portfolio, particularly in the clean energy and transmission segment. L&T’s consolidated order book stood at Rs 6.67 trillion as of September 30, 2025, up 30.69 per cent. The share of international orders remained at around 49 per cent.