Larsen & Toubro, ITOCHU: 300,000 tons per year offtake signed

Pair will work towards supply chain for renewable ammonia bunker fuel

Click to learn more about the new offtake agreement signed by ITOCHU and Larsen & Toubro. Source: Larsen & Toubro.

The pair have signed a long term partnership securing offtake (on a take-or-pay basis) for 300,000 tons of renewable ammonia per year. Japan-based ITOCHU Corporation has agreed to purchase the renewable ammonia from Larsen & Toubro in India.

ITOCHU will use the new ammonia supply to expand its ammonia bunkering applications in the Port of Singapore and other locations. The confirmed offtake in turn provides Larsen & Toubro with the confidence to to work towards FID for the source of this ammonia: its renewable production facility in Kandla, Gujarat. The partnership will support decarbonisation of the marine fuel sector by providing a secure supply of renewable ammonia fuel at a key maritime trade port.

The initial Joint Development Agreement (JDA) between these two companies was signed in July 2025.

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 MD & President at L&T, in his organisation’s press release, 22 Apr 2026

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, EVP, Member of the Board, and President at Machinery Company, ITOCHU Corporation, in L&T’s press release, 22 Apr 2026

ITOCHU is an industrious participant in development of the ammonia value chain:

• building demand for 300,000 tons per year of CCS-based ammonia from NH3 clean energy’s WAH2 production project in the Pilbara region of Australia in time for FID due late 2026.
• construction of a 5,000 m³ ammonia-fueled, ammonia bunkering vessel in partnership with Japan based-Sasaki Shipbuilding Ltd. Delivery is anticipated in 2027.
• the development of an ammonia bunkering hub in Japan (signing a JDA with partners TORAY Industries and Uyeno Transtech in September 2025).