LTEGL and ITOCHU partner for green ammonia supply, supporting clean shipping, bunkering growth, and global decarbonization efforts.
L&T Energy GreenTech Ltd (LTEGL), a fully owned subsidiary of Larsen & Toubro, has entered into a major long-term partnership with ITOCHU Corporation of Japan to strengthen the global green ammonia supply chain. Under this strategic agreement, LTEGL will provide 300,000 tonnes of green ammonia every year to ITOCHU on a captive, long-term take-or-pay basis. The supply will come from LTEGL’s proposed green ammonia production facility located at Kandla in Gujarat, which is expected to become an important export hub for low-carbon fuels.
The agreement was formally signed at ITOCHU’s headquarters in Tokyo by Derek M. Shah, Chief Executive Officer and Managing Director of LTEGL, and Hiroyuki Tsubai, Executive Vice President, Board Member, and President of the Machinery Company at ITOCHU Corporation. The event was attended by senior leaders from both organizations, including Masahiro Okafuji, Chairman and CEO of ITOCHU Corporation, S. N. Subrahmanyan, Chairman and Managing Director of L&T, and Subramanian Sarma, Deputy Managing Director and President of L&T. Their presence highlighted the importance of this partnership and its role in advancing clean energy goals for both companies.
This agreement is an important continuation of the Joint Development Agreement (JDA) signed between LTEGL and ITOCHU in July 2025. While the earlier agreement focused on collaborative development, the new long-term supply contract takes the partnership to the next level by ensuring secured demand for green ammonia production. This progression reflects growing trust and commitment between the two companies and strengthens their shared ambition of building a globally competitive and sustainable green ammonia value chain.
ITOCHU plans to use the green ammonia supplied from Kandla to support its expanding green bunkering operations. Green bunkering refers to the supply of environmentally friendly fuels for ships, and green ammonia is increasingly being recognized as a promising alternative marine fuel. This aligns with ITOCHU’s broader strategy of creating a global green ammonia ecosystem across major maritime trade routes. Since Singapore is one of the world’s largest marine fuel hubs, it is emerging as a key center for ammonia bunkering. This development is expected to play a major role in reducing carbon emissions in the shipping industry and accelerating the adoption of low-carbon fuels in maritime transport.
For LTEGL, this agreement strengthens its strategy of scaling up its green hydrogen and green derivatives business. The Kandla project is expected to serve as a major strategic location for exporting green fuels to global markets. It also supports India’s National Green Hydrogen Mission, which aims to position the country as a leading producer and exporter of green hydrogen and its derivatives, including green ammonia. By establishing reliable export capabilities, India can contribute significantly to the global clean energy transition.
The partnership will also help ITOCHU expand its bunkering operations not only in Singapore but also in other international locations. This will support the early adoption of green ammonia as a next-generation fuel for shipping and provide a dependable supply base for the maritime industry’s transition toward cleaner operations.
Commenting on the development, Subramanian Sarma stated that the agreement with ITOCHU represents a major step in converting L&T’s clean energy vision into large-scale and financially sustainable projects. He emphasized that securing long-term demand through a respected global partner strengthens the commercial foundation of L&T’s green ammonia platform and contributes meaningfully to worldwide decarbonization efforts.
Hiroyuki Tsubai also noted that building a reliable and scalable supply of green ammonia is essential for increasing its use as a marine fuel. He explained that the partnership with LTEGL gives ITOCHU a strong and trustworthy supply source, enabling the company to expand its green bunkering business and support the shipping sector’s shift toward low-carbon operations.
