Mumbai: Larsen & Toubro’s wholly-owned subsidiary, L&T Energy GreenTech Ltd (LTEGL) has signed an agreement with Japan’s ITOCHU Corporation to supply 300,000 tonnes of green ammonia on a captive or take-or-pay basis.
This deal is marks a significant milestone in India’s journey to become a green energy exporter, as this green ammonia partnership will help ITOCHU to boost its bunkering operations across leading maritime routes, especially Singapore.
Green Ammonia is a sustainable alternative to grey ammonia, which is used by splitting the hydrogen and oxygen in water and combining it with nitrogen. It is considered a clean fuel as it produces no carbon dioxide while being produced with renewable energy.
“The agreement with ITOCHU is a significant step in translating L&T’s clean energy ambitions into large-scale, bankable projects. By securing long-term demand through a reputed global partner like ITOCHU, we are strengthening the commercial foundation of our green ammonia platform, while contributing meaningfully to global decarbonisation”, Subramanian Sarma, Deputy Managing Director & President – L&T, said in a press release.
“Establishing a reliable and scalable supply of green ammonia is critical to accelerating its adoption as marine fuel. Our partnership with LTEGL provides a strong and credible supply base, enabling us to expand our bunkering business and support the shipping industry’s transition towards low-carbon operations”, Hiroyuki Tsubai, Executive Vice President, Member of the Board, and President – Machinery Company, ITOCHU Corporation, added.
