L&T Energy GreenTech Enters Joint Development Agreement with ITOCHU Corporation for Green Ammonia Project

Strategic Insights -

L&T Energy GreenTech Ltd (LTEG), a wholly-owned subsidiary of Larsen & Toubro (L&T), has entered into a Joint Development Agreement with ITOCHU Corporation of Japan to develop and commercialise a 300 KTPA green ammonia project at Kandla in Gujarat. This partnership marks a significant step in advancing clean energy solutions for the maritime sector and aligns with both L&T and ITOCHU's commitment to sustainability and decarbonisation. The project aims to cater to the growing demand for low-carbon ammonia as a zero-emission marine fuel, with ITOCHU planning to offtake the product for bunkering applications in Singapore.

Key Takeaways:

  • LTEG and ITOCHU will collaborate on the development of a 300 KTPA green ammonia facility at Kandla, Gujarat, with ITOCHU planning to offtake the product for bunkering applications in Singapore.
  • The partnership supports L&T's strategic vision to establish a presence across the green energy value chain and complements ITOCHU's initiatives to introduce low-carbon ammonia as a zero-emission marine fuel.
  • Commenting on the collaboration, L&T's Deputy Managing Director & President, Mr Subramanian Sarma, emphasized the company's commitment to driving the clean energy transition through innovation, strategic partnerships, and engineering excellence.
  • ITOCHU's Executive Vice President, Mr Hiroyuki Tsubai, stated that the joint development will reinforce initiatives to introduce low-carbon ammonia to the maritime sector as an alternative zero-emission fuel.
  • India is uniquely positioned to become a global leader in green hydrogen and its derivatives, with the National Green Hydrogen Mission envisioning a production capacity of at least 5 MMTPA by 2030.

Sources:

  • ITOCHU Corporation
  • Larsen & Toubro (L&T)
  • National Green Hydrogen Mission
  • Gulfoilandgas.com

Statistics:

  • 300 KTPA: The planned production capacity of the green ammonia facility.
  • 5 MMTPA: The minimum production capacity of green hydrogen envisioned by the National Green Hydrogen Mission by 2030.
  • USD 100 billion: The estimated investments attracted by India's National Green Hydrogen Mission.
  • India has abundant renewable resources and competitive electricity cost.
  • Kandla, Gujarat, has been identified as a principal production centre for green ammonia for ITOCHU's bunkering operations in Singapore.