-- L&T Energy Green Tech will supply 300,000 metric tons of green ammonia each year to Japan-based Itochu from a proposed production facility in Gujarat, India, the company said on Wednesday.
The long-term agreement provides for a long-term supply of cleaner fuel for the maritime sector, on a take-or-pay basis, the company said.
The deal deepens the partnership between the two companies after a joint development agreement signed last July through which they seek to work towards establishing a globally competitive green ammonia value chain.
Itochu will use the supplied green ammonia to expand its green bunkering applications for the decarbonization of the maritime sector.
The agreement also advances L&T's strategy of scaling its green hydrogen and derivatives platform, positioning the Kandla, Gujarat facility as a strategic export hub for low-carbon fuels.
India itself, through its National Green Hydrogen Mission, will advance its own aim of becoming a leading exporter of green energy derivatives through the deal, the statement said.