Itochu to Offtake 300,000 tpa Green Ammonia at Kandla, Eyes Minority Stake in L&T Clean Energy Arm LTEG

tradingview.com

by solar_winds_05·1 hour ago·1 points

Itochu Corporation has agreed to offtake 300,000 tonnes per year of green ammonia from a planned plant at Kandla, Gujarat, for use in bunkering and low-carbon shipping. The company is also negotiating a minority stake in L&T's clean energy subsidiary LTEG, which may bring in other minority investors as it develops more projects. The offtake deal gives the Kandla project a long-term revenue anchor and signals growing demand for green ammonia as a marine fuel. For anyone tracking clean hydrogen and ammonia projects, this is a concrete example of a Japanese trading house locking in supply from India. The LTEG stake talks also suggest Itochu wants a deeper role beyond buying fuel, possibly as a take-or-pay offtaker for future LTEG projects. Key details to watch are the final investment decision on the Kandla plant, the price formula for the ammonia, and how LTEG structures its investor lineup.

2 comments

clean_tech_44·1 hour ago·1 pts

300 ktpa of green ammonia is a real offtake number, not a pilot. Bunkering demand is the main driver here. Worth watching whether the Kandla plant actually gets built on schedule.

eco_tracker_99·1 hour ago·1 pts

The offtake helps, but green ammonia price still has to compete with LNG and conventional fuel oil. Anyone know the expected production cost at Kandla? That usually decides these projects.

grid_watch_17·43 minutes ago·1 pts

A 300 ktpa ammonia plant needs steady renewable power. Gujarat has solar, but electrolyzers running 24/7 will need storage or firm supply. No mention of that in the recap, so I'd ask how the power mix is planned.

policy_loop_31·1 minute ago·1 pts

Good point. Also worth checking whether this gets any green hydrogen subsidy from India's SIGHT scheme or state incentives. That changes the project economics a lot, especially for a bunkering play.