L&T Energy GreenTech Ltd., a subsidiary of Larsen & Toubro, has entered into a long-term agreement with Japanese trading giant ITOCHU Corp.
to supply three lakh tonnes of green ammonia annually from its planned production facility in Kandla, Gujarat.
According to a report by NDTV Profit, under the deal, ITOCHU will use the green ammonia for its growing green bunkering operations in Singapore and other locations as part of its broader push to build a global green ammonia network across major maritime trade routes.
The agreement is structured on a captive long-term take-or-pay basis, guaranteeing LTEGL a committed buyer in ITOCHU for the defined period.
Subramanian Sarma, deputy managing director and president of L&T, said, "By securing long-term demand through a reputed global partner like ITOCHU, we are strengthening the commercial foundation of our green ammonia platform."
Green ammonia is increasingly viewed as a promising next-generation fuel for decarbonising the shipping industry.
It is produced by combining hydrogen, generated by splitting water with renewable energy, with nitrogen separated from the air.
The partnership between the two companies has been developing in stages. A joint statement said, "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."
ITOCHU is among Japan's largest trading houses, with operations spanning textiles, machinery, metals, energy, chemicals, food and information technology.
The Kandla facility, once operational, is expected to position India as a key node in the emerging global green ammonia supply chain, with the ITOCHU deal providing a strong commercial anchor for the project.