L&T Energy, Larsen & Toubro’s subsidiary L&T Energy GreenTech has signed a long-term agreement with ITOCHU Corporation to supply 300,000 tonnes per annum (TPA) of green ammonia from a proposed facility in Kandla, Gujarat.

The agreement, announced on April 22, signals a shift from project development to commercial-scale execution in India’s emerging green hydrogen ecosystem.

Key Highlights

• Long-term supply of 300,000 TPA green ammonia from Kandla
• Agreement structured on a take-or-pay basis, ensuring committed demand
• Builds on a 2025 joint development agreement
• Supports global shipping decarbonisation efforts
• Positions India as a clean energy export hub

From Development to Commercial Scale

The deal marks a significant transition for L&T Energy GreenTech, moving from initial collaboration to secured long-term offtake. The partnership builds on a joint development agreement signed in July 2025, which laid the groundwork for the Kandla-based green ammonia project.

By locking in a long-term buyer, the project gains financial viability, as the “take-or-pay” structure ensures that the produced ammonia will be purchased regardless of market fluctuations.

Strategic Role of Kandla Facility

The upcoming facility in Kandla, Gujarat, is expected to serve as a major export hub for green ammonia. Its coastal location provides direct access to global shipping routes, making it ideal for large-scale exports of clean fuels.

Green ammonia produced at the site will be derived from renewable energy, making it a zero-carbon fuel alternative suitable for industries that are difficult to decarbonise, particularly shipping.

Boost to Green Marine Fuel Ecosystem

ITOCHU plans to utilise the ammonia supply for its green bunkering operations, especially in Singapore—one of the world’s busiest maritime fuel hubs.

Ammonia is increasingly being explored as a next-generation marine fuel because it does not emit carbon when used, offering a viable pathway for reducing emissions in global shipping.

Official Perspective

Senior leadership at L&T stated that the agreement strengthens the company’s clean energy strategy by securing long-term demand and enabling large-scale execution.

ITOCHU, on the other hand, emphasised that reliable supply chains are critical for accelerating the adoption of green ammonia as a marine fuel and expanding its global energy trading operations.

Context: India’s Green Hydrogen Push

The agreement aligns with India’s National Green Hydrogen Mission, which aims to position the country as a global leader in the production and export of green hydrogen and its derivatives, including ammonia.

Green ammonia is considered easier to store and transport than hydrogen, making it a preferred option for international trade and industrial use.

Public and Industry Impact

• Energy transition: Accelerates shift toward low-carbon fuels
• Shipping sector: Supports decarbonisation of global maritime operations
• Indian economy: Strengthens India’s role in global clean energy supply chains
• Employment & infrastructure: Boosts investment in green energy projects

For investors and industry stakeholders, the deal highlights growing commercial traction in green hydrogen-related sectors.

What Lies Ahead

The next phase will involve the development and commissioning of the Kandla facility, followed by large-scale production and export operations. Industry experts expect similar long-term agreements to emerge as demand for clean fuels rises globally.

Conclusion

The L&T Energy GreenTech–ITOCHU agreement marks a crucial milestone in India’s clean energy journey. By securing long-term demand and targeting global markets, the deal not only strengthens L&T’s green energy ambitions but also reinforces India’s position as a future hub for sustainable fuel exports.

Image credits: Wikipedia

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Last Updated on: Wednesday, April 22, 2026 10:44 am by Koushik Velpuri | Published by: Koushik Velpuri on Wednesday, April 22, 2026 10:44 am | News Categories: Business

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