L&T Energy GreenTech Enters Long-Term Green Ammonia Partnership with Japan's ITOCHU Corporation

L&T Energy GreenTech Ltd (LTEGL), a wholly-owned subsidiary of larsen & toubro , has signed a long-term partnership with ITOCHU Corporation of Japan to supply 300000 tonnes of green ammonia per annum from its proposed production facility at Kandla, Gujarat. The agreement was signed on a captive long-term take-or-pay basis, representing a significant progression in the partnership between the two companies.

Key Agreement Details

Aspect	Details
Supplier	L&T Energy GreenTech Ltd (LTEGL)
Buyer	ITOCHU Corporation, Japan
Supply Volume	300000 tonnes per annum
Location	Kandla, Gujarat
Agreement Type	Captive long-term take-or-pay basis

The long-term agreement was signed by Derek M Shah, CEO & MD of LTEGL, and Hiroyuki Tsubai, EVP, Member of the Board and President - Machinery Company at ITOCHU Corporation. The signing ceremony took place at ITOCHU's headquarters in Tokyo, attended by senior leadership including Masahiro Okafuji, Chairman & CEO of ITOCHU Corporation, S N Subrahmanyan, Chairman & MD of L&T, and Subramanian Sarma, Deputy MD & President of L&T.

Strategic Partnership Evolution

This latest agreement builds on the Joint Development Agreement (JDA) between the two companies signed in July 2025. The partnership has now progressed from joint development to securing long-term demand, reinforcing the collaboration between LTEGL and ITOCHU. The shared vision focuses on establishing a globally competitive green ammonia value chain.

ITOCHU will utilise the green ammonia supplied from Kandla to support its expanding green bunkering applications, aligned with its strategy to develop a global green ammonia ecosystem across key maritime trade routes. Singapore, identified as one of the world's leading marine fuel hubs, is emerging as a critical centre for ammonia bunkering. This initiative represents an important step towards decarbonising the maritime sector and supports the growing adoption of low-carbon fuels in shipping.

Alignment with National Mission

The agreement reinforces LTEGL's strategy to scale its green hydrogen and derivatives platform, positioning Kandla as a strategic export hub for low-carbon fuels. In line with India's National Green Hydrogen Mission, the project supports the country's ambition to become a leading exporter of green energy derivatives. Through this partnership, supplies from Kandla are expected to support ITOCHU's bunkering operations in Singapore and other locations, enabling the early adoption of green ammonia as a next-generation marine fuel.

Leadership Statements

Subramanian Sarma, Deputy Managing Director & President of L&T, stated: "The agreement with ITOCHU is a significant step in translating L&T's clean energy ambitions into large-scale, bankable projects. By securing long-term demand through a reputed global partner like ITOCHU, we are strengthening the commercial foundation of our green ammonia platform, while contributing meaningfully to global decarbonisation."

Hiroyuki Tsubai, Executive Vice President, Member of the Board, and President - Machinery Company at ITOCHU Corporation, commented: "Establishing a reliable and scalable supply of green ammonia is critical to accelerating its adoption as marine fuel. Our partnership with LTEGL provides a strong and credible supply base, enabling us to expand our bunkering business and support the shipping industry's transition towards low-carbon operations."

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.98%	-2.56%	+20.10%	+2.44%	+21.61%	+203.45%

Larsen & Toubro Limited has received continued analyst support from Jefferies, which has maintained its Buy rating on the engineering and construction major with a target price of ₹4,500.

Key Rating Factors

Jefferies' positive stance on the company is based on multiple strategic and operational considerations:

Factor	Impact
Share Price Recovery	Post Middle East conflict recovery observed
Regional Opportunities	Potential Middle East reconstruction projects
Cost Management	Manageable oil price and inflation impact
Growth Outlook	Expected double-digit medium-term expansion
Investment Discussions	Potential semiconductor sector opportunities

Market Position and Opportunities

The brokerage firm highlights the company's resilience in navigating recent geopolitical developments, particularly noting the share price recovery following Middle East conflict situations. This recovery demonstrates the market's confidence in the company's ability to manage regional challenges effectively.

Jefferies sees significant potential in Middle East reconstruction opportunities, which could provide substantial project pipelines for the engineering conglomerate. These opportunities align with the company's expertise in large-scale infrastructure and construction projects.

Operational Resilience

The analysis indicates that oil price fluctuations and cost inflation impacts remain manageable for the company. This operational resilience is viewed as a key strength, enabling the organization to maintain profitability despite external economic pressures.

Growth Prospects

The positive outlook is anchored on expectations of double-digit medium-term growth, reflecting the company's strong market position and project execution capabilities. Additionally, ongoing discussions around potential semiconductor investment opportunities could open new avenues for diversification and growth.

Jefferies' maintained Buy rating with a ₹4,500 target price reflects confidence in the company's strategic positioning and ability to capitalize on emerging market opportunities while effectively managing operational challenges.