L&T Seals Large Green Ammonia Supply Deal With Japanese Conglomerate

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

ITOCHU will utilise the green ammonia supplied by L&T Energy GreenTech Ltd. from Kandla 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," Subramanian Sarma, deputy managing director and president of L&T, said.

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 statement said.

ITOCHU is one of Japan's foremost trading companies for a wide range of products including textiles, machinery, metals, energy, chemicals, food and ICT.

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