L&T Energy GreenTech and ITOCHU of Japan Sign Long-Term Green Ammonia Supply Agreement

Key Takeaways

Larsen & Toubro (L&T) partners with Japan’s ITOCHU Corporation to supply 300,000 tonnes of green ammonia annually.
The agreement enhances green ammonia as a marine fuel, supporting ITOCHU’s operations in Singapore.
This collaboration aims to advance the decarbonization of the maritime sector and bolster low-carbon fuel adoption.

Partnership for Sustainable Fuels

Larsen & Toubro (L&T) has announced a long-term agreement with Japan’s ITOCHU Corporation to supply 300,000 tonnes of green ammonia each year from its upcoming facility in Kandla, Gujarat. This partnership involves L&T Energy GreenTech Ltd (LTEGL), a fully owned subsidiary of L&T, as detailed in a recent BSE filing.

ITOCHU is a diversified corporation engaged in the trading of a broad array of products, including textiles, machinery, metals, minerals, energy, and chemicals. The green ammonia sourced from Kandla will play a pivotal role in supporting ITOCHU’s bunkering activities in Singapore and other strategic locations, aligning with the maritime industry’s shift towards green alternatives.

Singapore is emerging as a vital hub for ammonia bunkering, a process that will enable ships to refuel using green ammonia, recognized as a next-generation marine fuel. This collaboration not only promotes the use of sustainable energy sources but also supports a broader effort to reduce carbon emissions in the maritime sector.

The agreement builds upon the Joint Development Agreement (JDA) signed by the two companies last year, marking significant progress in the transition towards low-carbon fuels in shipping. According to the filing, this initiative positions Kandla as a key export hub for low-carbon fuels and underlines LTEGL’s strategy to expand its green hydrogen and derivative offerings.

In summary, L&T and ITOCHU’s partnership represents a meaningful step towards the decarbonization of the maritime industry, fostering the early adoption of low-carbon solutions and establishing a sustainable framework for the future of marine fuels.

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