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Larsen & Toubro has entered into a long-term agreement with Japan’s ITOCHU Corporation to supply 3 lakh tonnes of green ammonia annually from its proposed facility in Kandla, Gujarat. The deal strengthens India’s position in the global green fuel supply chain and supports maritime decarbonisation efforts. The project is expected to position Kandla as a key export hub while advancing adoption of low-carbon fuels in international shipping markets.
Larsen & Toubro has signed a long-term agreement with ITOCHU Corporation for the annual supply of 3 lakh tonnes of green ammonia from its proposed facility in Kandla, Gujarat, according to a regulatory filing released earlier this week. The agreement has been executed through L&T Energy GreenTech Ltd (LTEGL), a wholly owned subsidiary of the company.
The supply from the Kandla facility is expected to support ITOCHU’s marine fuel operations, particularly ammonia bunkering in Singapore and other global locations. Industry developments indicate that Singapore is emerging as a key hub for ammonia bunkering, with growing focus on alternative marine fuels to reduce carbon emissions.
The agreement builds on a previously signed joint development arrangement between the two companies and aligns with L&T’s strategy to expand its green hydrogen and derivatives portfolio. The Kandla project is being positioned as a strategic export base for low-carbon fuels, aimed at meeting international demand as shipping and logistics sectors transition towards cleaner energy sources.
Green ammonia is increasingly being explored as a viable alternative fuel for maritime transport due to its zero-carbon combustion properties. The collaboration is expected to contribute to early-stage adoption of such fuels in global shipping networks, particularly in routes linked to major trading hubs.
The development reflects a broader shift within the energy and infrastructure sectors towards decarbonisation, with large engineering firms and global trading companies investing in next-generation fuel ecosystems. For India, projects such as the Kandla facility indicate a growing role in the global clean energy supply chain, supported by policy momentum and rising export potential in green fuels.
Source - PTI
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