L&T locks in Japan’s ITOCHU for 3 lakh tonne green ammonia offtake in major export deal

Larsen & Toubro on Wednesday said it has entered into a long-term agreement with Japan’s ITOCHU Corporation to supply 300,000 tonnes of green ammonia annually from its proposed facility in Gujarat.

Under the agreement, L&T Energy GreenTech Ltd (LTEGL), a wholly-owned subsidiary of Larsen & Toubro, will supply green ammonia to ITOCHU on a captive long-term take-or-pay basis from its upcoming plant at Kandla, the company said in a statement.

This represents an important step towards decarbonising the maritime sector and supports the growing adoption of low-carbon fuels in shipping, a BSE filing said.

The pact was signed in Tokyo by LTEGL CEO and Managing Director Derek M Shah and ITOCHU Executive Vice President Hiroyuki Tsubai in the presence of L&T Chairman and Managing Director S N Subrahmanyan and ITOCHU Chairman and CEO Masahiro Okafuji.

The agreement builds on a Joint Development Agreement signed between the two companies in July 2025.

ITOCHU operates in domestic trading, import, export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, general products.

The Japanese firm plans to utilise the green ammonia sourced from Kandla to support its growing green bunkering business as part of its strategy to develop a global green ammonia ecosystem.

“The agreement with ITOCHU is a significant step in translating L&T’s clean energy ambitions into large-scale, bankable projects,” said Subramanian Sarma, Deputy Managing Director and President, L&T.

“By securing long-term demand through a reputed global partner like ITOCHU, we are strengthening the commercial foundation of our green ammonia platform, while contributing meaningfully to global decarbonisation,” he added.

Hiroyuki Tsubai, Executive Vice President and President of Machinery Company at ITOCHU, said establishing a reliable and scalable supply of green ammonia is key to accelerating its use as a marine fuel.

“Our partnership with LTEGL provides a strong and credible supply base, enabling us to expand our bunkering business and support the shipping industry’s transition towards low-carbon operations,” he said.

The project supports India’s National Green Hydrogen Mission and the country’s ambition to become a leading exporter of green energy derivatives, the statement added.