L&T Energy GreenTech Ltd (LTEGL), a wholly owned subsidiary of Larsen & Toubro, has entered into a long-term agreement with ITOCHU Corporation for the supply of 300,000 tonnes per annum of green ammonia from its proposed production facility at Kandla, Gujarat.

Under the agreement, LTEGL will supply green ammonia to ITOCHU on a captive, long-term take-or-pay basis, ensuring stable demand for the project. The agreement was signed at ITOCHU’s headquarters in Tokyo by Derek M Shah, CEO & MD of LTEGL, and Hiroyuki Tsubai, Executive Vice President and President of the Machinery Company at ITOCHU, in the presence of senior leadership from both organisations.

The development builds on the Joint Development Agreement (JDA) signed between the two companies in July 2025 and marks a transition from project development to securing long-term offtake. It is expected to strengthen the commercial viability of LTEGL’s green ammonia platform while advancing a globally competitive supply chain.

ITOCHU plans to utilise the green ammonia to support its expanding bunkering operations, particularly in key maritime hubs such as Singapore, which is emerging as a major centre for ammonia-based marine fuels. The initiative aligns with global efforts to decarbonise the shipping industry through the adoption of low-carbon alternatives.

The agreement also supports LTEGL’s strategy to scale its green hydrogen and derivatives business, positioning Kandla as a strategic export hub for low-carbon fuels. The project is aligned with India’s broader ambitions under the National Green Hydrogen Mission to become a leading exporter of green energy derivatives.

Executives from both companies highlighted that the partnership will play a critical role in establishing a reliable and scalable green ammonia supply chain, enabling early adoption of alternative fuels in the maritime sector and contributing to global decarbonisation goals.