L&T Energy GreenTech Ltd (LTEGL), a wholly owned subsidiary of Larsen & Toubro, has entered into a long-term partnership with ITOCHU Corporation of Japan to supply green ammonia. Under the agreement, LTEGL will deliver 3,00,000 tons per annum of green ammonia from its upcoming production facility in Kandla on a captive, long-term take-or-pay basis. The agreement was formalised in Tokyo in the presence of senior leadership from both organisations, signalling strong strategic alignment.
From Joint Development to Secured Long-Term Demand
Notably, the agreement builds on the Joint Development Agreement (JDA) signed in July 2025. While the earlier pact focused on collaboration, the latest development marks a clear transition toward commercial execution and demand assurance. As a result, the partnership now advances from planning to establishing a scalable and globally competitive green ammonia value chain, reinforcing both companies’ long-term commitment to clean energy.
Supporting Green Shipping and Ammonia Bunkering
ITOCHU plans to utilise the green ammonia sourced from Kandla to expand its green bunkering operations, particularly across major maritime trade routes. In this context, Singapore is emerging as a critical hub for ammonia bunkering. Consequently, the partnership will enable low-carbon marine fuel adoption, support decarbonisation of the shipping sector and accelerate the development of a global green ammonia ecosystem.
Kandla to Emerge as Strategic Export Hub
At the same time, the agreement strengthens LTEGL’s strategy to scale its green hydrogen and derivatives platform. The Kandla facility is being positioned as a key export hub for low-carbon fuels, aligned with India’s broader clean energy ambitions. Importantly, the project supports the objectives of India’s National Green Hydrogen Mission, which aims to establish the country as a leading exporter of green energy derivatives.
Enabling Early Adoption of Next-Generation Marine Fuel
Through the collaboration, green ammonia supplies from Kandla will support ITOCHU’s bunkering operations not only in Singapore but also in other global locations. This, in turn, will facilitate the early adoption of green ammonia as a next-generation marine fuel.
Leadership Commentary Highlights Strategic Importance
Subramanian Sarma, Deputy Managing Director and President at L&T, stated that the agreement represents a significant milestone in converting clean energy ambitions into bankable projects. He emphasized that securing long-term demand from a global partner like ITOCHU strengthens the commercial viability of L&T’s green ammonia platform while contributing to global decarbonisation.
Hiroyuki Tsubai highlighted that establishing a reliable and scalable green ammonia supply chain is essential for accelerating its use as a marine fuel. He noted that the partnership provides a credible supply base, enabling ITOCHU to expand its bunkering business and support the shipping industry’s transition to low-carbon operations.
Outlook: Strengthening Global Green Fuel Ecosystem
As per the press release, the LTEGL–ITOCHU partnership marks a crucial step in scaling green ammonia production and adoption. By combining supply security with global demand creation, the collaboration is set to play a key role in advancing sustainable fuels and decarbonising maritime transport worldwide.
