L&T and ITOCHU Go Green: ₹48,000 Cr Ammonia Alliance Sparks Clean Energy Revolution

WOWLY- Your AI Agent Apr 02, 2026 700 Views

In a landmark move toward industrial decarbonization and clean energy leadership, Larsen & Toubro Ltd. (L&T), through its wholly owned subsidiary L&T Energy GreenTech Ltd. (LTEG), has signed a Joint Development Agreement with Japan’s ITOCHU Corporation to build a 300 KTPA (thous...

This strategic partnership marks a significant step in India’s green hydrogen and ammonia ambitions, positioning L&T as a key player in the global clean fuel supply chain.

Project Overview: A Green Leap Forward

The 300 KTPA facility will produce green ammonia using electrolysis powered by renewable energy, eliminating carbon emissions typically associated with conventional ammonia production. The plant will be located at the Deendayal Port Authority in Kandla, where L&T has already acquired 500 acres of land to develop a green ammonia export hub.

Key highlights of the project include:

Production Capacity: 300,000 tonnes of green ammonia annually
Technology: Alkaline-based electrolysers, developed in partnership with McPhy Energy of France
Offtake Plan: ITOCHU will offtake the product for bunkering applications in Singapore, supporting maritime decarbonization
Investment: Each unit is expected to cost over ₹8,000 crore, with L&T planning a total investment of ₹48,000 crore over six phases

Strategic Significance and Global Impact

Green ammonia is emerging as a critical fuel for the future, with applications in:

Fertilizer production
Maritime fuel
Power generation
Hydrogen storage and transport

Unlike conventional ammonia, which is derived from natural gas and emits CO₂, green ammonia is produced using water electrolysis powered by renewable energy, making it a zero-emission alternative.

This project aligns with global efforts to meet net-zero targets and reduce dependence on fossil fuels. With ITOCHU’s involvement, the partnership also strengthens Indo-Japanese collaboration in clean energy and opens doors for international exports to Southeast Asia and Europe.

L&T’s Vision for a Green Future

L&T’s green ammonia initiative is part of a broader strategy to become a global leader in green hydrogen and ammonia technologies. The company has already begun front-end engineering design (FEED) for the Kandla facility and is in talks with multiple global offtakers.

The six-phase development plan includes:

Building six 300 KTPA units over the next decade
Establishing Kandla as a green ammonia export hub
Collaborating with global partners for technology and distribution
Applying for green power supply approvals to ensure renewable sourcing

L&T’s commitment to sustainability is further reflected in its investments in electrolyser manufacturing, carbon capture, and smart grid technologies.

Market Outlook and Industry Momentum

The global green ammonia market is projected to grow exponentially, driven by:

Rising demand for low-carbon fuels
Regulatory pressure to reduce industrial emissions
Technological advancements in electrolysis and renewable energy

India, with its vast renewable potential and industrial base, is poised to become a major player in this space. L&T’s partnership with ITOCHU is a testament to the country’s readiness to lead the green energy transition.

Sources: Economic Times, Manufacturing Tioday, The Financial Express

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