Sembcorp, Japanese Firms Sign Historic Green Ammonia Export Agreement to Japan

In a landmark agreement, Sembcorp Industries and Japanese firms have signed a deal to export green ammonia from India to Japan. Union Minister of New and Renewable Energy Pralhad Joshi chaired the signing ceremony for the Heads of Terms (HoT) agreement between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co, and NYK Line.

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India's Green Ammonia Production

Green ammonia is produced using renewable energy sources, making it 100% carbon-free. The process involves combining hydrogen, generated by splitting water using renewable energy, with nitrogen separated from the air. India aims to become a hub for green ammonia and green hydrogen production due to its abundant and affordable renewable energy resources.

Sembcorp Industries produces green ammonia in India using electricity from renewable sources like sunlight. Kyushu Electric Power plans to integrate this green ammonia into its energy mix, reducing coal consumption at its thermal power plants in Japan. Sojitz Corporation will act as the business intermediary, connecting the producer with the off-taker.

Role of NYK Line

NYK Line will manage the maritime transportation of green ammonia from India to Japan. Each company involved will develop the term sheet into a legally binding document at a later stage. Previously, on June 6, a heads of terms agreement for the offtake was signed in Singapore. Earlier, on January 17, Sembcorp, Kyushu Electric, and Sojitz signed a joint development agreement to develop the green ammonia project as equity partners.

This collaboration marks the first such agreement between India and Japan, highlighting India's growing importance in the global green energy sector. Speaking at the event, Joshi said, "Today is a historic day as we mark the first-ever agreement for the supply of Green Ammonia from India to Japan."

India's Commitment to Green Energy

Joshi emphasised India's rapid progress in green hydrogen and renewable energy. He reiterated India's commitment to becoming a global leader in green hydrogen and ammonia production through partnerships, regulatory frameworks, and substantial investments. He also announced that a tender for 7.5 lakh tonnes per annum of green ammonia is currently live, with additional tenders for 4.5 lakh tonnes capacity also floated.

The minister highlighted that these efforts are part of India's broader strategy to incentivise the production of over a million tonnes per annum of green hydrogen. This demonstrates India's capability and intent to scale up green energy production at an unprecedented pace.

Cultural Ties and Future Collaborations

Joshi spoke about the deep cultural ties between India, Japan, and Singapore. He noted that these countries are collaborating on energy efficiency and renewable energy technologies. He expressed confidence that this agreement is just the beginning of India's expanding capabilities in the green energy sector.

This agreement not only reinforces India's position as a key player in the global green energy market but also reflects the Government of India's steadfast support for green hydrogen and renewable energy initiatives. The collaboration with Japan showcases India's growing expertise and commitment to sustainable development and energy independence.

The partnership aims to establish a robust supply chain from production in India to consumption in Japan. It paves the way for future collaborations in the green energy sector, further solidifying India's role in this field.