Itochu to offtake 300,000 tonnes of Indian green ammonia for maritime fuel in Asia

Larson & Toubro Greentech (LTEGL) will supply Japanese trading firm Itochu with 300,000 tonnes of green ammonia per year, the full production capacity of its Indian facility due online in 2028.

The long-term offtake deal, building on a 2025 joint development agreement, will allow Itochu to supply green ammonia to ships in the Asia-Pacific region.

It could see Itochu use its 5,000m³ ammonia bunkering vessel due to be built in Singapore by Sasaki Shipbuilding Company to fuel ships in the region.

The vessel is expected to be delivery in September 2027, with Itochu also eyeing plans to bunker green fuel in Spain, Egypt, and Japan.

The ammonia will be supplied by LTEGL’s planned 300,000-tonne green hydrogen-based ammonia plant in . Itochu previously agreed to help the Indian conglomerate build the facility.

Hiroyuki Tsubai, Executive Vice President of Itochu, said the LTEGL partnership provides a strong supply base for the company’s expansion into low-carbon maritime bunkering.

This comes with the International Maritime Organization set to impose Net Zero framework, imposing a carbon levy on ships above 5,000 tonnes from 2028.

The growth of green fuels in the maritime sector is increasingly viewed as critical for decarbonising the industry, which accounts for around 2-3% of global carbon dioxide emissions.

Green ammonia – while criticised for challenges around combustion efficiency, toxicity, and the production of nitrogen oxides – offers compatibility with existing global infrastructure and emerging marine technologies.