L&T and ITOCHU Sign Long-Term Green Ammonia Supply Deal

L&T Energy GreenTech Ltd has entered into a long-term agreement with Japan’s ITOCHU Corporation to supply 300,000 tonnes of green ammonia annually, marking a significant step in the development of a global low-carbon fuel market.

Under the deal, LTEGL—part of Larsen & Toubro—will produce the fuel at its proposed facility in Kandla, Gujarat, supplying it to ITOCHU on a long-term take-or-pay basis. The agreement builds on a joint development partnership signed between the two companies in 2025 and represents a shift towards securing firm demand for green ammonia.

The signing ceremony took place at ITOCHU’s headquarters in Tokyo, attended by senior executives including Subramanian Sarma and Hiroyuki Tsubai.

The green ammonia will primarily support ITOCHU’s growing bunkering operations, particularly in Singapore, one of the world’s leading marine fuel hubs. The fuel is expected to play a key role in decarbonising the shipping sector, where ammonia is emerging as a promising alternative to conventional fossil fuels.

The partnership aligns with India’s ambitions under its National Green Hydrogen Mission to become a leading exporter of green energy derivatives. It also positions Kandla as a strategic hub for low-carbon fuel exports.

Mr Sarma said the agreement strengthens the commercial viability of L&T’s clean energy strategy.

“This is a significant step in translating our clean energy ambitions into large-scale, bankable projects,” he noted, highlighting the importance of securing long-term demand through global partnerships.

Mr Tsubai added that establishing a stable supply chain is essential to scaling adoption of green ammonia in maritime applications.

“Our partnership provides a strong and credible supply base, enabling us to expand our bunkering business and support the shipping industry’s transition towards low-carbon operations,” he said.

The deal underscores growing international collaboration to accelerate the adoption of alternative fuels, as the shipping industry faces increasing pressure to reduce emissions in line with global climate targets.