L&T Signs Green Ammonia Supply Deal with Japan

Larsen and Toubro (L&T) has signed a long-term agreement with Japan’s ITOCHU Corporation for the annual supply of 300,000 tonnes of green ammonia, marking another major step in India’s clean energy export ambitions. The deal will be executed through L&T Energy GreenTech and supports India’s broader strategy of becoming a global supplier of green hydrogen and its derivatives such as green ammonia.

What the Agreement Includes

Under the agreement, L&T Energy GreenTech will supply 300,000 tonnes of green ammonia every year from its proposed production facility in Gujarat. Green ammonia is produced using green hydrogen generated from renewable energy sources and is considered an important low-carbon fuel option. It is especially significant for sectors like shipping, where decarbonisation remains a major challenge.

Why Green Ammonia Matters

Green ammonia is emerging as a key fuel for reducing carbon emissions in global maritime transport. Unlike conventional ammonia made using fossil fuels, green ammonia is produced without carbon-intensive processes. It can be used directly as a cleaner marine fuel or as a hydrogen carrier for global energy trade. Countries like Japan and South Korea are increasingly investing in long-term imports of green ammonia to meet their net-zero goals.

Japan’s Strategic Supply Chain Plans

ITOCHU aims to build a global green ammonia supply ecosystem across major maritime trade routes, including Singapore and other strategic shipping hubs. By partnering with Indian producers, Japan is seeking reliable long-term clean fuel supply for its industrial and shipping sectors. This reflects a wider Asia-Pacific shift towards low-carbon fuels and stronger regional clean energy cooperation.

Important Facts for Exams

• Green ammonia is produced using green hydrogen generated from renewable energy sources.
• Ammonia can act as both a clean shipping fuel and a hydrogen carrier.
• India’s National Green Hydrogen Mission aims to produce 5 million tonnes of green hydrogen by 2030.
• Gujarat is emerging as a major hub for green hydrogen and ammonia projects due to port access and renewable energy capacity.

India’s Growing Role in Green Fuel Exports

Indian companies are increasingly securing export agreements for green ammonia with countries such as Japan and South Korea. The government aims to produce around 5 million tonnes of green hydrogen and related products by 2030 through policy support and subsidies. Deals like this strengthen India’s position in the global clean energy market while also supporting industrial growth, energy transition and export competitiveness.