New Delhi, April 22 : A subsidiary company of Larsen & Toubro Ltd signed a long-term deal with Japan's ITOCHU Corp on Wednesday to supply three lakh tonnes of green ammonia per annum from its proposed production facility at Kandla in Gujarat.

ITOCHU will utilise the green ammonia supplied by L&T Energy GreenTech Ltd. to support its expanding green bunkering applications in Singapore and other locations, aligned with its strategy to develop a global green ammonia ecosystem across key maritime trade routes, a statement said.

The deal is a captive long-term take-or-pay basis, which means LTEGL is assured a customer in the Japanese company for the defined period. "By securing long-term demand through a reputed global partner like ITOCHU, we are strengthening the commercial foundation of our green ammonia platform," said Subramanian Sarma, deputy managing director and president of L&T.

Green ammonia is seen as a next-generation marine fuel for decarbonising the maritime sector. Combining hydrogen produced through splitting water using renewable energy and nitrogen separated from the air produces green ammonia.

"This latest agreement builds on the Joint Development Agreement (JDA) between the two companies signed in July 2025 and marks a significant progression in the partnership â?? from joint development to securing long-term demand. It reinforces the collaboration between LTEGL and ITOCHU, and advances the shared vision of establishing a globally competitive green ammonia value chain," the company statement said.

LTEGL focuses on accelerating the energy transition through green hydrogen and its derivatives. It operates across three core pillars â?? Green Manufacturing, Development, and Engineering, Procurement, and Construction (EPC) â?? providing integrated solutions for decarbonisation, including building electrolysers and large-scale green hydrogen plants. The company develops, owns, and operates green hydrogen projects, including India's largest green hydrogen plant at Indian Oilâ??s Panipat Refinery, designed to supply tonnes annually for 25 years.

With approximately 90 bases in 60 countries, ITOCHU, one of the leading 'sogo shosha' (Japanese general trading companies), is engaging in domestic trading, import-export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, general products, realty, information and communications technology, and finance, as well as business investment in Japan and overseas.

/IANS