Larsen & Toubro’s (L&T) clean energy arm, L&T Energy GreenTech Ltd (LTEGL), has announced that it has entered into a long-term agreement with Japan’s ITOCHU Corporation to supply 300,000 tonnes per annum (TPA) of green ammonia, marking a key step in scaling its green fuel business.

The supplies will be executed from LTEGL’s proposed facility at Kandla, Gujarat, under a long-term take-or-pay arrangement, ensuring assured offtake and revenue visibility. The agreement builds on a joint development pact signed in July 2025 and signals a shift from project development to commercial execution.

Subramanian Sarma, Deputy Managing Director & President, L&T, said the agreement is a significant step in translating the company’s clean energy ambitions into “large-scale, bankable projects.” He added that securing long-term demand through a global partner strengthens the commercial foundation of its green ammonia platform while contributing to global decarbonisation efforts.

Shipping transition underpins demand

ITOCHU is expected to utilise the green ammonia primarily for bunkering operations in Singapore and other major maritime hubs, as the global shipping industry steps up efforts to reduce carbon emissions.

Green ammonia is emerging as a viable alternative marine fuel, though large-scale adoption hinges on reliable supply and long-term contracts that can support capital-intensive projects.

Hiroyuki Tsubai, Executive Vice President, Member of the Board and President - Machinery Company at ITOCHU Corporation, said establishing a reliable and scalable supply of green ammonia is critical for its adoption as a marine fuel. He added that the partnership provides a strong supply base to expand bunkering operations and support the transition towards low-carbon shipping.

Kandla facility to anchor exports

The Kandla project aligns with India’s National Green Hydrogen Mission, which aims to position the country as a global hub for green hydrogen and derivative exports.

With access to port infrastructure, the facility is expected to serve as a key export base for supplying clean fuels to markets such as Japan. The agreement also strengthens L&T’s presence across the green hydrogen value chain, including production and downstream applications.

Separately, L&T said its board will meet on May 5, 2026, to consider and approve its audited FY26 financial results and a dividend, if any.