The project, a significant step towards decarbonizing the maritime sector, will see ITOCHU offtake the green ammonia for use as a zero-emission marine fuel in Singapore.
L&T Energy GreenTech Ltd (LTEG), a wholly owned subsidiary of Larsen & Toubro, has entered into a Joint Development Agreement with Japan’s ITOCHU Corporation. The collaboration, announced on Wednesday, August 13, is aimed at developing and commercializing a substantial 300 KTPA green ammonia project located in Kandla, Gujarat.
The partnership represents a crucial stride in advancing sustainable solutions for the global maritime industry. Under the terms of the agreement, LTEG and ITOCHU will work together on the facility's development. Following its completion, ITOCHU is slated to offtake the green ammonia for utilization in bunkering applications in Singapore, a global hub for shipping.
L&T had previously acquired a significant land parcel in Kandla, strategically positioning itself to develop projects focused on green hydrogen and green ammonia. This latest collaboration is a direct extension of LTEG's strategic vision to establish a comprehensive presence across the green energy value chain. The project also complements ITOCHU’s ongoing initiatives to integrate low-carbon ammonia as a viable and zero-emission marine fuel, thereby paving the way for cleaner shipping operations.
Speaking on the landmark agreement, Subramanian Sarma, Deputy Managing Director & President of L&T, highlighted the company’s deep commitment to the energy transition. "As the global energy landscape shifts decisively towards sustainability, L&T remains deeply committed to driving the clean energy transition through innovation, strategic partnerships, and engineering excellence," Mr. Sarma stated. "The partnership with ITOCHU reflects L&T’s larger vision of enabling a cleaner, greener future through sustainable business focus," he added.
Hiroyuki Tsubai, Executive Vice President and President of the Machinery Company of ITOCHU Corporation echoed this sentiment. He commented that the joint development with the L&T Group will significantly reinforce ITOCHU’s efforts to introduce low-carbon ammonia to the maritime sector as an alternative fuel. He further noted that the project would establish Kandla, on India's west coast, as the primary production center for green ammonia, which would then be used for ITOCHU's bunkering operations in Singapore.
India is uniquely positioned to become a global leader in the production of green hydrogen and its derivatives, thanks to its abundant renewable resources and competitive electricity costs. The nation's ambitious National Green Hydrogen Mission envisions achieving a production capacity of at least 5 MMTPA by 2030, a goal expected to attract investments exceeding USD 100 billion. This initiative is designed not only to catalyze industrial innovation but also to create green jobs and enhance India's energy security.
