Under a joint development agreement, the pair plans to build green hydrogen and ammonia production facilities in Kandla, Gujarat.

L&T acquired land in Kandla last year with plans to set up clean fuel projects.

The Japanese trading major intends to offtake the green ammonia output for bunkering applications in Singapore, as it looks to supply the clean fuel to the maritime sector.

Itochu has already announced plans to demonstrate ammonia bunkering in Singapore after October 2027 as it eyes commercial operations by 2028.

“Kandla, located on the west coast of India, will become the principal production centre of green ammonia for Itochu’s bunkering operations in Singapore, said Hiroyuki Tsubai, Executive Vice-President at Itochu.

The trader also plans to bunker the clean fuel in Spain, Egypt, and Japan.

It comes as the International Maritime Organization finalises global mandates for maritime decarbonisation, with green ammonia viewed as a critical fuel for the sector’s future.

As an already widely traded commodity, ammonia infrastructure is already available in port locations, with work now being done to trial its use as a fuel.