The proposed facility is intended to provide the contracted volumes on a captive long-term take-or-pay basis. The deal builds on a Joint Development Agreement signed in July 2025 and moves the partnership from joint development to a long-term supply arrangement.

ITOCHU plans to use the green ammonia for green bunkering applications. Supplies from Kandla are expected to support its bunkering operations in Singapore and other locations as the company develops a green ammonia ecosystem across key maritime trade routes.

For LTEGL, a wholly-owned subsidiary of Larsen & Toubro, the agreement supports plans to scale its green hydrogen and derivatives platform, with Kandla positioned as an export hub for low-carbon fuels. The project is also aligned with India’s National Green Hydrogen Mission and the country’s ambition to export green energy derivatives.

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

Hiroyuki Tsubai, Executive Vice President, Member of the Board, and President – Machinery Company, ITOCHU Corporation, commented: “Establishing a reliable and scalable supply of green ammonia is critical to accelerating its adoption as 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.”

Source:  Hydrotechworld