New Delhi: Singapore-headquartered renewable energy major Sembcorp Industries has signed an agreement with Kyushu Electric Power Co. to export green ammonia from its India facility to Japan. Kyushu will use the ammonia to reduce coal consumption at its thermal power plants.
The signing event was chaired by union minister of new and renewable energy Pralhad Joshi. “The heads of terms (HoT) agreement was signed between Sembcorp Industries, Sojitz Corp, Kyushu Electric Power Co., and NYK Line, solidifying a cross-border green ammonia supply partnership from India to Japan,” according to a ministry statement.
“This agreement represents the first such collaboration between the two nations, underscoring India’s growing prominence in the global green energy landscape,” it added.
“Sembcorp will lead the production of green ammonia in India (at its Tamil Nadu plant), utilizing renewable energy sources. Kyushu Electric has committed to integrating this green ammonia into their energy mix, partially replacing coal consumption at their thermal power plants in Japan.”
“Sojitz Corp. will act as the business intermediary, facilitating the connection between the ammonia producer and the offtaker. NYK Line will oversee the maritime transportation of green ammonia from India to Japan,” the ministry said.
Speaking at the event, Joshi emphasized the importance of the partnership. “This agreement will help establish a robust supply chain from production in India to consumption in Japan, paving the way for future collaborations in the green energy sector.”
Joshi said a tender for 750,000 tonnes of green ammonia per annum is currently active, and additional tenders for 450,000 tonnes per annum have also been issued.
Under the National Green Hydrogen Mission, the government aims to produce 5 million metric tonnes (MMT) of green hydrogen annually by 2030, and establish India as a hub for green hydrogen exports. Green hydrogen is converted into green ammonia for easier transport.