Larsen & Toubro has signed a long-term agreement with ITOCHU Corporation to supply 3 lakh tonnes of green ammonia annually from its upcoming facility in Kandla, Gujarat.
The supply will be executed through L&T Energy GreenTech Ltd., with ITOCHU set to use the green ammonia for its expanding green bunkering operations in Singapore and other global locations. The agreement aligns with ITOCHU’s strategy to build a global green ammonia ecosystem across key maritime trade routes.
The deal is structured on a long-term captive take-or-pay basis, ensuring assured demand for LTEGL over the contract period. “By securing long-term demand through a reputed global partner like ITOCHU, we are strengthening the commercial foundation of our green ammonia platform,” said Subramanian Sarma, deputy managing director and president of L&T.
Green ammonia is emerging as a next-generation marine fuel aimed at decarbonising the maritime sector. It is produced by combining hydrogen, generated through renewable energy-powered water splitting, with nitrogen extracted from air.
This agreement builds on the Joint Development Agreement (JDA) signed between the two companies in July 2025, marking a transition from joint development to long-term demand assurance. The partnership aims to establish a globally competitive green ammonia value chain.
ITOCHU is among Japan’s leading trading companies, with operations spanning textiles, machinery, metals, energy, chemicals, food, and ICT.
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