L&T Energy GreenTech Signs Major Green Ammonia Supply Agreement with ITOCHU
L&T arm signs green ammonia supply deal with Japan's ITOCHU
The Economic TimesImage: The Economic Times
Larsen & Toubro's clean energy arm, L&T Energy GreenTech Ltd, has entered a long-term agreement with Japan's ITOCHU Corporation to supply 300,000 tonnes of green ammonia annually. This deal aims to enhance Kandla's role as a low-carbon fuel export hub, supporting the National Green Hydrogen Mission.
- 01L&T Energy GreenTech will supply 300,000 tonnes of green ammonia annually to ITOCHU.
- 02The supply will come from a new facility in Kandla, India.
- 03This agreement builds on a previous joint development pact signed in July 2025.
- 04ITOCHU plans to use the ammonia mainly for marine fuel in Singapore.
- 05The deal aims to strengthen the commercial viability of green ammonia as a clean energy source.
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Larsen & Toubro's clean energy subsidiary, L&T Energy GreenTech Ltd (LTEGL), has signed a significant long-term agreement with Japan's ITOCHU Corporation to supply 300,000 tonnes of green ammonia annually. This agreement, announced in a regulatory filing, builds on a joint development pact established in July 2025. Under the terms, LTEGL will provide green ammonia from its upcoming facility in Kandla, Gujarat, India, on a long-term, take-or-pay basis. This initiative is expected to position Kandla as a crucial export hub for low-carbon fuels, aligning with the National Green Hydrogen Mission's objective of enhancing green energy exports. Subramanian Sarma, deputy managing director of L&T, emphasized that this agreement bolsters the commercial viability of their green ammonia platform and furthers their clean energy initiatives. ITOCHU plans to utilize the ammonia primarily for marine fuel applications, especially in Singapore, which is a key global bunkering center. Hiroyuki Tsubai, an executive at ITOCHU, noted that establishing a reliable and scalable supply of green ammonia is essential for its adoption as marine fuel.
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This agreement could lead to increased job opportunities in Kandla and boost local economic growth through the establishment of a new facility.
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