L-T–ITOCHU Green Ammonia Deal Boosts India’s Clean Energy Export Strategy

Overview

Larsen and Toubro has entered a long-term contract with ITOCHU Corporation to deliver 300,000 tonnes of green ammonia every year, which is a significant move towards India becoming a clean energy exporter to the world. The project shall be implemented using L&T Energy GreenTech out of a proposed plant in Gujarat.

The major aspects of the Agreement.

The agreement is aimed at mass production and export of green ammonia:

• Annual supply: 300,000 tonnes
• Location of production: Gujarat (upcoming green energy centre)
• Implementing company: L&T Energy GreenTech.
• Target market Japan and maritime fuels around the world.

This is a sign of long term industrial partnership between Japan and India in clean fuels.

Green Ammonia is Significant.

Hydrogen generated by renewable energy sources is used to produce green ammonia, thus being a low-carbon alternative to traditional fuels. It is important because:

• As a clean marine fuel, decarbonise shipping.
• Serve as a hydrogen carrier to international energy trade.
• Cutting of emissions in the hard-to-cut sectors.

It is becoming popular among countries such as Japan and South Korea in order to achieve climate targets.

Strategic Energy Approach of Japan.

ITOCHU wants to develop a green ammonia supply chain worldwide, particularly in major shipping ports like Singapore. Japan is collaborating with India to:

• Ensuring the clean fuel supply on long-term basis.
• Diversifying energy sources
• In line with its net-zero efforts.

This is also indicative of larger Asia-Pacific energy transition cooperation.

The Growing Green Fuel Ecosystem in India.

India is enhancing its stance with such efforts as the National Green Hydrogen Mission, which aims at producing 5 million tonnes of green hydrogen by 2030.
Gujarat is becoming a major centre since:

• Good base of renewable energy.
• Export connectivity at ports.
• Industrial infrastructure

These deals improve the competitiveness of India in exports and energy diplomacy.

MCQ

Q1. The main reason why green ammonia is important is that it:
A. Is less costly than coal.
B. Emits a lot of carbon.
C. Is a clean fuel and hydrogen carrier.
D. Has sole application in farming.

Answer: C

Explanation: The renewable energy is used to produce green ammonia, which serves as a low-carbon fuel and an efficient hydrogen carrier, and as a result, would be crucial in global energy transition.