Larsen & Toubro (L&T) is planning to invest up to ₹48,000 crore to establish six green ammonia manufacturing units at Deendayal Port Authority in Kandla, Gujarat. According to sources familiar with the proposal, the project is expected to be implemented in six phases over the next decade. Each unit will have a production capacity of 3,00,000 tonnes per annum (KTPA) and will require an investment of approximately ₹8,000 crore per plant.
Green ammonia is emerging as a key material in the global effort to decarbonize industrial activities. It is produced using green energy and water electrolysis, which avoids carbon dioxide emissions during the production process. The demand for green ammonia is rising globally as companies work towards achieving net-zero emission targets.
L&T is reportedly in discussions with various global buyers and plans to finalize agreements for the manufacture and export of green ammonia in the coming months. The company intends to make the Kandla facility a hub for exporting green ammonia to markets in Southeast Asia and Europe. The demand for green ammonia in these regions is increasing, and L&T has been participating in international tenders to secure export opportunities.
Ammonia is widely used in the production of agricultural fertilizers, chemicals, synthetic fibers, explosives, dyes, and pharmaceuticals. It is also being used as a fuel for ships and in boilers, turbines, and engines to generate heat and electricity while reducing greenhouse gas emissions. Currently, ammonia is mostly produced using natural gas, a process that generates carbon dioxide emissions. Green ammonia, however, is produced without emitting carbon dioxide, making it a cleaner alternative for industrial use.
Last year, L&T acquired approximately 500 acres of land at Kandla Port for the development of these green ammonia units. The company has already started the front-end engineering design (FEED) phase of the project, which is carried out after the feasibility study. The financial investment decision for the first phase is expected within the next 12 months.
L&T is also taking steps to ensure the facility’s operations align with its green energy goals. The company has applied for green power supply at the site to support the production process. Additionally, L&T has partnered with McPhy Energy of France for the manufacturing of electrolysers. These electrolysers, based on alkaline technology, will play a crucial role in converting green hydrogen to green ammonia for export purposes.
The establishment of these green ammonia units reflects the growing role of clean energy solutions in industrial applications. By investing in this project, L&T is positioning itself as a key player in the green energy transition while contributing to the decarbonization of industries worldwide.