Mumbai: L&T is accelerating its clean energy ambitions by locking in long-term demand for green ammonia, marking a key shift from project development to commercial scale execution.
Locks In Long-Term Demand
L&T Energy GreenTech Ltd (LTEGL), a wholly owned subsidiary of Larsen & Toubro, has signed a long-term partnership with ITOCHU Corporation to supply 300000 tonnes of green ammonia annually. The agreement is structured on a captive take-or-pay basis, ensuring stable offtake from its upcoming production facility at Kandla in Gujarat.
Expands Ammonia Value Chain
The agreement builds on the joint development agreement signed between the two companies in July 2025, marking a transition from collaboration to confirmed demand. This progression strengthens the foundation for a globally competitive green ammonia value chain, aligning both partners toward scaling production and supply capabilities in the emerging clean fuel segment.
Powers Maritime Transition
ITOCHU plans to use the supplied green ammonia to support its expanding bunkering operations, particularly in key maritime hubs such as Singapore. As highlighted in the press release on page 2, this initiative aims to facilitate the adoption of low-carbon marine fuels, helping the shipping sector reduce emissions and move toward sustainable operations.
Strengthens Export Strategy
For L&T, the Kandla facility is being positioned as a strategic export hub for green hydrogen derivatives. The partnership aligns with India’s National Green Hydrogen Mission and supports the country’s ambition to become a major exporter of low-carbon fuels. Management indicated that securing a global partner strengthens the commercial viability of its clean energy platform.
Executives from both companies emphasised that the agreement enhances supply reliability and accelerates the adoption of green ammonia in global shipping, while reinforcing long-term collaboration in sustainable energy solutions.
Disclaimer: This article is based solely on the company-provided press release document and does not include independent verification or inputs from external sources.
