A subsidiary of Larsen & Toubro Ltd has signed a long-term agreement with Japan’s ITOCHU Corp to provide three lakh tonnes of green ammonia annually from a planned facility in Kandla, Gujarat. ITOCHU will use this green ammonia to support its expanding green bunkering operations in Singapore and other locations, in line with its strategy to establish a global green ammonia network along major maritime trade routes.
The deal, based on a captive long-term take-or-pay model, ensures a dedicated customer for the specified duration for L&T Energy GreenTech Ltd. “By securing long-term demand with a reputable global partner like ITOCHU, we are enhancing the commercial base of our green ammonia platform,” stated Subramanian Sarma, Deputy Managing Director and President of L&T.
Green ammonia is viewed as a cutting-edge marine fuel for reducing carbon emissions in the maritime industry. It is produced by combining hydrogen generated through water electrolysis using renewable energy and nitrogen extracted from the atmosphere. This recent agreement expands on the Joint Development Agreement (JDA) between the two firms signed in July 2025, marking a significant step forward in their partnership from joint development to securing long-term demand. It reinforces the cooperation between LTEGL and ITOCHU, advancing their shared goal of establishing a globally competitive green ammonia value chain.
LTEGL is dedicated to hastening the energy transition through green hydrogen and its by-products. It operates in three main areas – Green Manufacturing, Development, and Engineering, Procurement, and Construction (EPC) – offering comprehensive solutions for decarbonization, including the construction of electrolysers and large-scale green hydrogen plants. The company also develops, owns, and manages green hydrogen projects, including India’s largest green hydrogen plant at Indian Oil’s Panipat Refinery, designed to supply tonnes annually for 25 years.
ITOCHU, with around 90 bases in 60 countries, is a prominent ‘sogo shosha’ (Japanese general trading company) engaged in domestic trading, import-export, and overseas trading of various products. These include textiles, machinery, metals, minerals, energy, chemicals, food, general products, real estate, information and communications technology, and finance, as well as business investments in Japan and abroad.
