Larsen & Toubro Signs Long-Term Green Ammonia Supply Deal with Japan’s ITOCHU Corporation

Key Facts

• L&T Energy GreenTech (LTEG), a wholly owned subsidiary of Larsen & Toubro, will supply 300,000 tonnes of green ammonia annually.
• The green ammonia will be produced at a proposed facility in Kandla, Gujarat, leveraging renewable energy to generate green hydrogen.
• ITOCHU Corporation of Japan is the off-taker, with plans to primarily use the green ammonia as a zero-carbon marine fuel, including bunkering applications in Singapore and other strategic maritime hubs.
• Green ammonia is produced without carbon-intensive processes, using green hydrogen from electrolysis powered by renewable sources, offering a cleaner alternative to conventional fossil-fuel-derived ammonia.
• This supply agreement is integral to India’s National Green Hydrogen Mission, which targets producing 5 million tonnes of green hydrogen annually by 2030 to promote decarbonization and clean energy exports.
• Gujarat’s port infrastructure and renewable energy availability make it a critical hub for green ammonia and hydrogen production projects.

Background & Context

Ammonia is traditionally produced from fossil fuels, contributing significant carbon emissions. Green ammonia, synthesized using green hydrogen from renewable energy, offers a promising low-carbon solution especially for sectors difficult to electrify, such as maritime shipping. Shipping accounts for substantial global emissions; therefore, green ammonia is gaining attention as a carbon-free fuel. Japan and other maritime nations are investing heavily in importing green ammonia to meet their net-zero targets. The collaboration between L&T and ITOCHU aligns with these global trends and India’s strategic vision to become a significant exporter of green hydrogen and derivatives.

Why This Matters for Exams / Exam Relevance

This agreement exemplifies India’s expanding role in the global clean energy transition through international partnerships and domestic production scale-up. It highlights the National Green Hydrogen Mission’s targets and the commercial viability of green ammonia as a marine fuel alternative. Questions on energy policies, environmental initiatives, and India-Japan bilateral clean energy cooperation may reference this development. Understanding the significance of green ammonia in decarbonizing transport, especially maritime sectors, is essential for environmental science, geography, and current affairs segments in competitive and academic exams.

Points to Remember

• Year of announcement: 2026 (April)
• Annual green ammonia supply quantity: 300,000 tonnes
• Project location: Kandla, Gujarat, India
• Partner companies: Larsen & Toubro Energy GreenTech and ITOCHU Corporation (Japan)
• Green ammonia is synthesized from green hydrogen produced by electrolysis powered by renewable energy sources (solar, wind, etc.), resulting in zero carbon emissions.
• ITOCHU plans to utilize green ammonia primarily for marine bunkering to reduce emissions in maritime shipping.
• India’s National Green Hydrogen Mission aims to produce 5 million tonnes of green hydrogen by 2030, integrating projects like this into its export and clean energy strategy.
• Gujarat is a strategic hub due to port connectivity and renewable energy potential.