L&T Energy GreenTech Ltd has signed a long-term agreement with ITOCHU Corporation to supply 300,000 tonnes per year of green ammonia from its planned production facility in Kandla, Gujarat in India.
The deal, agreed in Tokyo, is structured as a captive take-or-pay arrangement and marks a shift from joint project development to securing firm offtake. It builds on a prior agreement between the two companies signed in July 2025.
Under the arrangement, ammonia produced at Kandla will be directed towards Itochu’s growing marine fuel activities, including bunkering operations in Singapore and other key shipping hubs, as the company develops a broader ammonia supply chain.
The agreement also supports L&T’s strategy to scale its green hydrogen and derivatives business, with Kandla positioned as a key export location aligned with India’s National Green Hydrogen Mission.
Subramanian Sarma, deputy managing director and president of L&T, said: “The agreement with Itochu is a significant step in translating L&T’s clean energy ambitions into large-scale, bankable projects. By securing long-term demand through a reputed global partner like Itochu, we are strengthening the commercial foundation of our green ammonia platform, while contributing meaningfully to global decarbonisation”.
Hiroyuki Tsubai, executive vice president at Itochu, added: “Establishing a reliable and scalable supply of green ammonia is critical to accelerating its adoption as marine fuel. Our partnership with LTEGL provides a strong and credible supply base, enabling us to expand our bunkering business and support the shipping industry’s transition towards low-carbon operations”.
