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L&T Secures Landmark Deal to Supply Green Ammonia to Japan's ITOCHU

L&T's subsidiary LTEGL has signed a long-term deal with Japan's ITOCHU to supply 300,000 tonnes of green ammonia annually. The supply will come from a proposed production facility in Kandla, Gujarat. ITOCHU will use the green ammonia for bunkering applications in Singapore and other locations. The deal is on a captive long-term take-or-pay basis, ensuring demand for LTEGL.

Key Points: L&T Green Ammonia Deal with Japan's ITOCHU

  • L&T subsidiary signs long-term deal with ITOCHU
  • 300,000 tonnes green ammonia per annum from Kandla facility
  • ITOCHU to use for green bunkering in Singapore
  • Builds on July 2025 Joint Development Agreement
2 min read

L&T clinches long-term deal to supply green ammonia to Japan's ITOCHU

L&T's subsidiary signs long-term deal to supply 300,000 tonnes of green ammonia annually to Japan's ITOCHU for marine fuel.

"By securing long-term demand through a reputed global partner like ITOCHU, we are strengthening the commercial foundation of our green ammonia platform. - Subramanian Sarma"

New Delhi, April 22

A subsidiary company of Larsen & Toubro Ltd signed a long-term deal with Japan's ITOCHU Corp on Wednesday to supply three lakh tonnes of green ammonia per annum from its proposed production facility at Kandla in Gujarat.

ITOCHU will utilise the green ammonia supplied by L&T Energy GreenTech Ltd. to support its expanding green bunkering applications in Singapore and other locations, aligned with its strategy to develop a global green ammonia ecosystem across key maritime trade routes, a statement said.

The deal is a captive long-term take-or-pay basis, which means LTEGL is assured a customer in the Japanese company for the defined 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 seen as a next-generation marine fuel for decarbonising the maritime sector. Combining hydrogen produced through splitting water using renewable energy and nitrogen separated from the air produces green ammonia.

"This latest agreement builds on the Joint Development Agreement (JDA) between the two companies signed in July 2025 and marks a significant progression in the partnership - from joint development to securing long-term demand. It reinforces the collaboration between LTEGL and ITOCHU, and advances the shared vision of establishing a globally competitive green ammonia value chain," the company statement said.

LTEGL focuses on accelerating the energy transition through green hydrogen and its derivatives. It operates across three core pillars - Green Manufacturing, Development, and Engineering, Procurement, and Construction (EPC) - providing integrated solutions for decarbonisation, including building electrolysers and large-scale green hydrogen plants. The company develops, owns, and operates green hydrogen projects, including India's largest green hydrogen plant at Indian Oil's Panipat Refinery, designed to supply tonnes annually for 25 years.

With approximately 90 bases in 60 countries, ITOCHU, one of the leading 'sogo shosha' (Japanese general trading companies), is engaging in domestic trading, import-export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, general products, realty, information and communications technology, and finance, as well as business investment in Japan and overseas.

- IANS

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Reader Comments

P
Priya S
Interesting deal, but I hope the local communities in Kandla and Gujarat see real benefits - jobs, infrastructure, and environmental safeguards. Green ammonia is promising, but we must ensure the transition doesn't leave anyone behind. The take-or-pay clause is smart for L&T though.
M
Michael C
As someone working in the maritime sector, this is big news! Green ammonia as bunker fuel in Singapore - that's the future. India becoming a supplier in this chain is a massive opportunity. L&T and ITOCHU partnership is a smart strategic alignment.
V
Vikram M
A good step, but 3 lakh tonnes per annum is still small compared to global demand. We need many more such deals if India wants to be a serious player in the green ammonia market. Also, the cost of production using renewable energy needs to come down significantly. Let's see the actual pricing details.
S
Sarah B
Happy to see Indian companies leading in green tech! This is exactly the kind of innovation we need to tackle climate change while boosting our economy. Japan is a smart partner - they're serious about decarbonisation. Well done, L&T! 👏
R
Rohit P
I'm cautiously optimistic. Green ammonia is energy-intensive to produce and transport. Hope the entire lifecycle emissions are truly green - from solar/wind generation to ammonia cracking at the destination. Otherwise it's just another 'greenwash' label. Transparency will be key.

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