L&T GreenTech, ITOCHU Ink Green Ammonia Supply Deal

L&T Energy GreenTech (LTEGL) has agreed to supply 300,000 tonnes of green ammonia annually to Japan's ITOCHU Corporation from its Kandla facility. Announced on April 22, 2026, this long-term, take-or-pay agreement solidifies demand for India's green ammonia production and supports global decarbonisation efforts, with supply set to begin on April 22, 2026.

Deal Agreement

L&T Energy GreenTech Ltd (LTEGL), part of the USD 30 billion Larsen & Toubro conglomerate, announced its long-term partnership with Japan's ITOCHU Corporation on April 22, 2026. Under the agreement, LTEGL will supply 300,000 tonnes of green ammonia yearly from its Kandla facility to ITOCHU on a take-or-pay basis. This deal follows a prior Joint Development Agreement signed in July 2025.

Strategic Impact

This partnership significantly boosts India's green energy ambitions, aligning with the National Green Hydrogen Mission. It directly supports the decarbonisation of the maritime sector by providing a critical low-carbon fuel for bunkering. The move positions Kandla, Gujarat, as an important export hub for sustainable fuels.

India's Green Hydrogen Push

India launched its National Green Hydrogen Mission in January 2023 with the goal of becoming a global hub for green hydrogen and ammonia production. The mission targets 5 million tonnes per annum (MTPA) of green hydrogen by 2030, aiming to attract substantial investment. L&T, through LTEGL, is actively participating in this transition, using its extensive EPC expertise. The company previously secured land in Kandla for green hydrogen and ammonia projects. ITOCHU, a major Japanese trading house, is also invested in developing green ammonia supply chains and promoting its use as a marine fuel. The prior JDA between LTEGL and ITOCHU in July 2025 laid the groundwork for this long-term supply commitment.

Key Implications

• Secures Long-Term Demand: The take-or-pay agreement guarantees offtake for LTEGL's green ammonia production, offering commercial stability.
• Boosts Export Potential: It strengthens India's role as a green fuel exporter, with Kandla becoming a key supply point for international markets like Singapore.
• Accelerates Maritime Decarbonisation: The supply of green ammonia helps the shipping industry shift from fossil fuels.
• Reinforces Strategic Vision: The deal validates L&T's strategy to be a leader in the green energy value chain.

Potential Risks

• Geopolitical Uncertainty: While this project is in India, L&T's broader operations can be affected by geopolitical events, such as conflicts in the Middle East, which could disrupt supply chains and logistics.
• Project Execution: Developing large-scale green ammonia facilities requires careful project management and timely execution, with potential risks related to clients, partners, and suppliers.
• Global Adoption Pace: The speed at which the maritime sector adopts green ammonia as a primary fuel will impact long-term demand beyond this initial agreement.

Industry Peers

L&T's peers in the green energy space include Reliance Industries, which is investing heavily in green hydrogen, and Adani Green Energy, a renewable power producer expanding into green fuels. Indian Oil Corporation is also developing green hydrogen projects at its refineries. These companies are competing for a share of India's growing green hydrogen and ammonia market.

Looking Ahead

• Kandla Facility Progress: Monitor construction and commissioning timelines for the green ammonia production plant at Kandla.
• ITOCHU's Bunkering Infrastructure: Track developments in ITOCHU's plans for green ammonia bunkering operations in Singapore and other global maritime hubs.
• Broader Green Ammonia Adoption: Observe market trends and regulatory developments supporting the uptake of green ammonia as a marine fuel globally.