Larsen and Toubro's green energy unit L&T Energy GreenTech has signed an agreement with Japan's ITOCHU Corporation to supply 300,000 tonnes (t) per annum of green ammonia. The supply is to originate from a proposed production facility in the western Indian state of Gujarat. The companies characterised the pact as long-term and targeted at supporting the energy transition in maritime fuels. The arrangement forms part of corporate plans to export low carbon fuels to overseas buyers.

ITOCHU plans to develop a global green ammonia supply ecosystem that links key maritime trade routes including Singapore, which the firm sees as crucial for shipping bunkers and logistics. Green ammonia is being positioned as a means to decarbonise the shipping sector by providing a lower carbon alternative to conventional marine fuels. The deal follows a pattern of Indian suppliers securing contracts to deliver green ammonia to markets such as South Korea and Japan.

India has set a target to produce about 5 million (mn) tonnes (t) of green hydrogen and derived fuels by 2030, supported by state subsidies to scale manufacturing and logistics. Industry analysts view such targets as driving investment in electrolysis capacity, renewable power integration and export oriented production hubs. Developers are preparing feasibility studies and supply chain assessments.

The long-term agreement signals growing international demand for green ammonia and reflects collaboration between Indian producers and global trading houses to establish supply chains. Both parties indicated the arrangement is intended to strengthen energy security along maritime corridors and to foster commercial frameworks for future offtake. Analysts view the agreement as accelerating investment in renewable power and storage required for green ammonia production. Market observers expect similar pacts to shape the emerging green maritime fuel market.