L&T Energy GreenTech, a wholly owned subsidiary of Larsen & Toubro, has signed a long term agreement with Japan’s ITOCHU Corporation for the supply of green ammonia, marking a shift from project development to commercial offtake.
Long term offtake to support green ammonia value chain
Under the agreement, L&T Energy GreenTech will supply 300,000 tonnes of green ammonia annually to ITOCHU from its proposed production facility in Kandla, Gujarat. The deal is structured as a long term take or pay arrangement, providing assured demand for the project and strengthening its commercial viability.
The partnership builds on a joint development agreement signed between the two companies in July 2025 and represents the next phase of collaboration, moving towards execution and supply. ITOCHU is expected to utilise the green ammonia for its global bunkering operations, particularly in key maritime hubs such as Singapore, as part of efforts to reduce emissions in the shipping sector.
The agreement is aligned with the broader push to develop a global green ammonia value chain, with India emerging as a potential export hub for low carbon fuels. The development also supports decarbonisation of hard to abate sectors such as shipping, where green ammonia is being explored as an alternative fuel. |
