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L&T GreenTech has signed a deal to supply 300,000 tonnes of green ammonia annually to Japan’s ITOCHU.
The importance: Ammonia is emerging as a clean alternative fuel, especially for shipping, which is under pressure to cut emissions. As the world moves towards decarbonisation, demand for green ammonia is expected to surge.
The deets: the ammonia will be produced at L&T’s upcoming Kandla (Gujarat) facility and shipped to markets like Singapore, a major global marine fuel hub. ITOCHU plans to use it for marine bunkering, helping shipping companies transition away from fossil fuels.
Zoom out: the Iran war disrupted global fertiliser supply, since ammonia is a key input, leading to shortages and price spikes. Now, countries are looking to secure supply and shift to greener alternatives.
India, through its Green Hydrogen Mission, is aiming to become a major exporter, and deals like this show that shift is already underway.
Big theme: India has abundant solar and wind energy, which helps produce green hydrogen (the base for green ammonia) at lower costs.
Plus, government support through the National Green Hydrogen Mission and strategic ports like Kandla make exports feasible.
That said, scaling is the real challenge. While projects like L&T’s can handle initial volumes, becoming a major global supplier will depend on how quickly India can build large-scale renewable capacity, expand production infrastructure, and bring costs down.
