I have been told that when there are load balancers and multiple servers, lucene will not work.
Is there an alternative that we can still use Lucene as the search engine.
You might have read that Solr is a better solution, but Lucene does work. You will have indexes on all your servers though.
More info on a similar question here: How to maintain Sitecore Lucene Indexes in a huge content delivery web farm?
Lucene does work. You will get separate copy of indexes on all your severs and they would be updated seprately on each server.
There are alternatives: