India's L&T Signs Green Ammonia Supply Deal with ITOCHU
L&T Energy GreenTech will supply 300,000 tonnes of green ammonia annually to ITOCHU from its Gujarat plant. The deal aims to decarbonize global shipping routes.
In a significant move toward maritime decarbonization, LARSEN & TOUBRO LTD announced that its green energy subsidiary, L&T Energy GreenTech, has entered into a long-term supply agreement with the Japan based trading firm ITOCHU CORP. Under the terms of the agreement, the Indian infrastructure giant will provide 300,000 tonnes of green ammonia annually to the Japanese conglomerate.
The green ammonia will be produced at a proposed facility located in the western state of Gujarat, India. This fuel is increasingly viewed as a critical component for reducing carbon emissions within the global shipping industry. The partnership aligns with the broader strategy of ITOCHU to establish a comprehensive green ammonia supply network across major international maritime routes, including Singapore.
The deal underscores a growing trend of Indian firms securing substantial export orders for green hydrogen derivatives. Companies across the subcontinent are seeing heightened demand from East Asian nations, specifically South Korea and other regional partners looking to transition to cleaner energy sources.
This commercial activity supports the ambitious environmental targets set by the Indian government. The nation aims to reach a production capacity of approximately 5 million tons of green hydrogen and its associated derivatives by 2030. To facilitate this growth, the government has implemented various state subsidies designed to accelerate the development of the green energy sector.
