Itochu locks in green ammonia supply from India
Japanese conglomerate Itochu has secured exclusive long-term supply of 300,000 mt/year of green ammonia from L&T Energy GreenTech's proposed production facility in Kandla, Gujarat.
IMAGE: Concept of an ammonia bunker vessel. Itochu
L&T Energy GreenTech is a subsidiary of Indian engineering conglomerate Larsen & Toubro.
The contract formalises a preliminary agreement first announced in July 2025.
The supply has been agreed on a “captive long-term take-or-pay basis,” meaning the entire output from the L&T’s Kandla facility will be exclusively allocated to Itochu.
Under this structure, Itochu is contractually obligated to pay for the full volume regardless of whether it takes delivery.
This type of contract typically protects the producer from the risk of buyer cancellation or reduced offtake and provides the revenue certainty needed for facility construction.
Itochu intends to use the green ammonia for bunkering, with Singapore as its first target market. The company plans to expand the model to Japan, Egypt near the Suez Canal and Spain around the Strait of Gibraltar.
It has separately signed a memorandum of understanding with Norwegian producer NH3 Clean Energy to potentially offtake 300,000 mt/year of blue ammonia from its Western Australia plant for the same purpose.
Itochu also plans to deploy an ammonia bunkering vessel to support the Singapore rollout, with ship-to-ship bunkering trials on a Mitsui O.S.K. Lines' ammonia-capable bulk carrier planned for 2027.
By Konica Bhatt
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