L&T Energy GreenTech (LTEG), a wholly owned subsidiary of Larsen & Toubro, has signed a Joint Development Agreement with Japan’s ITOCHU Corporation to set up a 300,000 tonnes per year (300 KTPA) green ammonia plant at Kandla, Gujarat. The plant will run entirely on renewable energy, producing carbon-free ammonia for use as a clean marine fuel.
Why Kandla?
Kandla, located on India’s west coast, is one of the country’s busiest ports with direct access to international shipping routes. L&T had already secured land in the area for green hydrogen and ammonia projects, making it an ideal choice for large-scale production and export.
Roles in the Project
Under the agreement, LTEG will handle the engineering, procurement, and construction (EPC) of the facility, leveraging its strong infrastructure capabilities. ITOCHU will purchase the green ammonia output for maritime bunkering in Singapore and possibly other global ports. This makes the project a key link in the clean fuel supply chain for international shipping.
Why Green Ammonia Matters
Green ammonia is made using renewable energy and does not release carbon emissions. It is seen as a promising alternative fuel for the shipping industry, helping meet the International Maritime Organization’s (IMO) targets for reducing greenhouse gas emissions.
Statements from Leaders
- Subramanian Sarma, Whole-Time Director at L&T, said the partnership reflects the company’s commitment to building a cleaner future through innovation.
- Hiroyuki Tsubai, Senior Managing Executive Officer at ITOCHU, noted that the project will make Kandla a major hub for green ammonia, while supporting Singapore’s shift to sustainable marine fuels.
Bigger Picture
This project is in line with India’s National Green Hydrogen Mission, which aims to reach 5 million tonnes per year production capacity by 2030. Gujarat is quickly becoming a leading state for such projects due to its strong renewable energy resources and well-developed port infrastructure.
What’s Next?
The next stages will involve feasibility studies, plant design, and construction. Commercial operations could start after 2027, matching ITOCHU’s planned timeline for green ammonia supply to Singapore’s maritime sector.
This collaboration not only strengthens India’s position in the global clean energy market but also showcases how strategic partnerships can speed up the shift to low-carbon fuels.