L&T Energy GreenTech (LTEGL), a wholly owned subsidiary of Larsen and Toubro (L&T), has signed a long-term agreement with Japan-based ITOCHU Corporation to supply 300,000 metric tons of green ammonia annually from a proposed facility in Kandla, Gujarat.

The agreement establishes a take-or-pay arrangement under which ITOCHU will procure the entire output on a captive basis. The contract builds on a joint development agreement signed in July 2025 and marks a shift from project development to securing long-term demand for green ammonia.

ITOCHU plans to use the supply to expand its marine fuel, or bunkering, operations. The company is targeting demand from global shipping routes where regulators and operators are seeking lower-emission fuel options. Singapore is expected to be a key location for ammonia bunkering supported by this supply.

Green ammonia is being evaluated as a potential alternative to conventional fuels in the maritime sector because it does not emit carbon dioxide during combustion.

For LTEGL, the project aligns with its strategy to scale its green hydrogen and derivatives business. The Kandla facility is being positioned as an export-oriented hub for low-carbon fuels, supporting India’s National Green Hydrogen Mission to become a major global producer and exporter.

Recently, the Ministry of New and Renewable Energy notified standards for green ammonia and green methanol under the National Green Hydrogen Mission, establishing emission thresholds and certification frameworks for both fuels.

The Union Cabinet approved the National Green Hydrogen Mission in 2023 to facilitate the creation of demand, production, utilization, and export of green hydrogen, with an initial outlay of ₹197.44 billion (~$2.16 billion).

In May 2025, L&T Energy Green Tech won the Indian Oil Corporation’s auction to set up a green hydrogen generation unit of 10 kilo tons per annum capacity on a build-own-operate basis at its Panipat Refinery Petrochemical Complex, Haryana.