Larsen & Toubro (L&T) is set to invest up to Rs 480 billion in establishing six green ammonia manufacturing units at the Deendayal Port Authority in Kandla, Gujarat, as part of its ambitious decade-long capital expenditure plan.

Each of the six units will have a capacity of 300 KTPA (thousand tonnes per annum) and be built in phases, with an investment of up to Rs 80 billion per plant.

Green ammonia, a critical component in decarbonising industrial processes, is in high demand globally as industries strive to meet net-zero emission targets.

The company is also exploring tenders worldwide, with a focus on South East Asia and Europe, to expand its green ammonia export capabilities.

Green ammonia, produced using renewable energy through water electrolysis, offers a cleaner alternative to ammonia derived from natural gas, which emits CO? during production. This innovative process is gaining traction as a sustainable solution across sectors, from fertilizer and pharmaceuticals to fuel for ships and power generation.

In April, L&T acquired nearly 500 acres at Kandla Port to set up its green ammonia manufacturing units, marking the facility as a future export hub. The company has already initiated front-end engineering design (FEED) work for the plant, with a financial investment decision expected within the next year.

L&T’s strategy includes collaboration with McPhy Energy of France to manufacture electrolysers for green hydrogen conversion to green ammonia, further cementing its position in the green energy sector.