Strategic Partnership / Offtake agreement
L&T Energy GreenTech signs long-term green ammonia supply partnership with ITOCHU
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L&T Energy GreenTech (LTEGL), a subsidiary of Larsen & Toubro, has entered into a long-term partnership with Japan’s ITOCHU Corporation to supply 300,000 tonnes per annum of green ammonia from its upcoming Kandla facility, strengthening its clean energy business and global presence.
PRICE-SENSITIVE TRIGGER
Event: Long-term green ammonia supply agreement with ITOCHU
Type: Strategic Partnership / Offtake agreement
Impact: Positive
Immediate Effect: Improves revenue visibility through long-term demand tie -up and strengthens L&T’s positioning in the global green hydrogen/ammonia value chain
Financial Snapshot
- Supply commitment: 300,000 tonnes per annum
- Agreement type: Long-term take-or-pay contract
- Location: Kandla, Gujarat (proposed facility)
Highlight:
- Secured long-term offtake agreement, ensuring demand visibility for green ammonia production
What Happened ?
L&T Energy GreenTech Ltd (LTEGL) has signed a long-term agreement with ITOCHU Corporation under which it will supply 300,000 tonnes per annum of green ammonia on a take-or-pay basis from its upcoming production facility in Kandla, Gujarat
key highlights
Strategic Partnership
- Agreement signed with Japan-based ITOCHU Corporation
- Builds on earlier Joint Development Agreement (JDA) signed in July 2025
- Transition from development stage to commercial offtake
Commercial Structure
- Long-term take-or-pay contract, ensuring assured demand
- Enhances bankability of green ammonia project
Project & Execution
- Supply to be sourced from proposed Kandla facility
- Positions Kandla as a strategic export hub
End Use & Market
- Ammonia to support marine fuel (bunkering) applications
- Focus on global shipping decarbonisation
- Singapore identified as key demand hub
Strategic Impact
- Strengthens L&T’s green hydrogen/ammonia platform
- Aligns with India’s National Green Hydrogen Mission
- Expands global clean energy footprint
Note:
- This is not just an MoU — it is a commercial offtake agreement, which is significantly more valuable.
Risk Analysis
Key Risks
- Project execution and commissioning timelines
- Capex intensity of green ammonia projects
- Dependency on global demand and pricing
- Regulatory and policy risks in green hydrogen ecosystem
Worst Case Scenario
- Delays in project execution could postpone revenue realization despite having secured demand.
Risk Level: Medium
Company Commentary
- Partnership is a major step toward scaling green ammonia platform
- Strengthens commercial foundation via long-term demand
- Supports global decarbonisation and marine fuel transition
- Enhances strategic positioning in low-carbon energy markets
Official Exchange Filing: Larsen & Turbo Limited