L&T Energy GreenTech has finalized a long-term take-or-pay agreement to supply 300,000 tonnes of green ammonia annually to Japan’s ITOCHU Corporation. Sourced from a new facility in Kandla, Gujarat, the fuel will support ITOCHU’s global bunkering network, specifically targeting the decarbonization of major maritime hubs like Singapore.
L&T Energy GreenTech Ltd (LTEGL), a subsidiary of the Indian multinational engineering firm Larsen & Toubro, has entered into a long-term captive supply agreement with Japan’s ITOCHU Corporation. According to official disclosures, LTEGL will provide 300,000 tonnes of green ammonia per annum from its upcoming production site in Kandla, Gujarat.
The agreement follows a 2025 joint development pact and utilizes a take-or-pay structure to ensure fixed demand. ITOCHU Corporation is a diversified Japanese conglomerate with significant interests in machinery, energy, and global trade logistics. This development is pivotal for the maritime industry, which is under increasing pressure to transition toward low-carbon fuels. ITOCHU intends to utilize the Indian-produced ammonia to fuel its green bunkering operations, with a particular focus on Singapore’s status as a premier global shipping hub.
By securing a reliable supply of green derivatives, the partnership accelerates the commercial viability of ammonia as a next-generation marine fuel, which is essential for meeting international emission reduction targets. For investors and policymakers, the deal underscores India’s emerging role as a cost-competitive export hub for green hydrogen and its derivatives, aligning with the National Green Hydrogen Mission. The project impacts the renewable energy, shipping, and chemical sectors, signaling a shift toward localized production for global consumption.
Strategically, this partnership establishes a robust value chain that connects Indian manufacturing capabilities with Japanese distribution networks. For businesses in the maritime logistics space, it provides a clear roadmap for the availability of alternative fuels, encouraging investment in ammonia-ready vessel technology and specialized port infrastructure along key trade routes.
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