L&T Energy signs green ammonia supply deal with Japan’s ITOCHU

L&T Energy GreenTech Ltd, a wholly-owned subsidiary of Larsen & Toubro, has entered into a long-term partnership with Japan’s ITOCHU Corporation for the supply of green ammonia. The agreement was signed at ITOCHU’s headquarters in Tokyo.

Under the captive, long-term take-or-pay arrangement, LTEGL will supply 300,000 tonnes of green ammonia per annum to ITOCHU. The supply will originate from LTEGL’s proposed production facility in Kandla, Gujarat.

The agreement builds on the Joint Development Agreement (JDA) signed between the two companies in July 2025. It represents a shift from joint development to a firm, long-term offtake commitment, aimed at establishing a global green ammonia value chain.

ITOCHU plans to use the ammonia from Kandla primarily for green bunkering. The company stated that the supply will support its strategy to develop a green ammonia ecosystem across key maritime trade routes, with a focus on emerging bunkering hubs such as Singapore. The initiative is positioned to support maritime decarbonisation and accelerate the adoption of low-carbon fuels in shipping.

For LTEGL, the agreement supports its strategy to scale its green hydrogen and derivatives platform, with the Kandla facility positioned as a strategic export hub. The project aligns with India’s National Green Hydrogen Mission and the broader objective of becoming a major exporter of green energy derivatives.

Subramanian Sarma, Deputy Managing Director and President of L&T, said the agreement strengthens the commercial foundation of the company’s green ammonia platform and contributes to global decarbonisation efforts.

Hiroyuki Tsubai, Executive Vice President and President – Machinery Company at ITOCHU Corporation, stated that the partnership provides a reliable and scalable supply base to expand ITOCHU’s bunkering business and support the shipping sector’s transition to low-carbon operations.

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