Larsen & Toubro’s wholly owned arm L&T Energy GreenTech Ltd has entered into a long-term agreement with ITOCHU Corporation to supply green ammonia, marking a major step toward cleaner fuels in the global shipping sector.
Under the agreement, LTEGL will supply 300,000 tonnes of green ammonia annually to ITOCHU on a long-term take-or-pay basis. The fuel will be produced at the company’s upcoming facility in Kandla, being developed as a key export hub, Solar Quarter reported.
The deal builds on an earlier joint development agreement signed in July 2025 and signals a move toward full-scale commercial execution. The agreement was signed at ITOCHU’s headquarters in Tokyo by Derek M. Shah, CEO and Managing Director of LTEGL and Hiroyuki Tsubai,Executive Vice President of ITOCHU in the presence of senior leaders including S. N. Subrahmanyan and Masahiro Okafuji.
ITOCHU plans to use the supply to expand its green fuel operations, particularly for ships. The ammonia will mainly support bunkering activities in Singapore, which is emerging as a key centre for low-carbon marine fuels.
The use of green ammonia is expected to help reduce emissions from the shipping industry, which faces increasing pressure to cut carbon output.
For L&T, the partnership aligns with its strategy to expand its green hydrogen and related fuels business. The Kandla project also supports India’s National Green Hydrogen Mission, aimed at positioning the country as a major exporter of clean fuels.
Company officials said securing long-term demand from a global partner strengthens the financial viability of such projects.
ITOCHU said reliable, large-scale supply of green ammonia will be essential for the shipping industry’s shift toward cleaner fuels, and the partnership will help expand its global operations in this space.
Both companies said the collaboration is a step toward building a low-carbon future, combining LTEGL’s production capacity with ITOCHU’s global distribution network.
