India and Japan ink contract for green ammonia exports

  • Industry News
  • Aug 26,24
The Heads of Terms (HoT) agreement was formalized between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power, and NYK Line, establishing a cross-border green ammonia supply partnership from India to Japan.
India and Japan ink contract for green ammonia exports

India and Japan have signed their first project offtake agreement for the export of green ammonia, marking a significant milestone in India’s ambitions to become a global leader in green hydrogen and ammonia production. The agreement was signed in the presence of Minister of New & Renewable Energy, Pralhad Joshi, and represents a pivotal moment in the two nations' collaboration on green energy.

The Heads of Terms (HoT) agreement was formalized between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power, and NYK Line, establishing a cross-border green ammonia supply partnership from India to Japan.

Sembcorp Industries will spearhead the production of green ammonia in India using renewable energy sources. Kyushu Electric Power has committed to integrating this green ammonia into its energy mix, partially replacing coal at its thermal power plants in Japan. Sojitz Corporation will serve as the business intermediary, connecting the ammonia producer with the off-taker, while NYK Line will manage the maritime transportation of the green ammonia from India to Japan.

“This is a historic day as we mark the first-ever agreement for the supply of Green Ammonia from India to Japan. This agreement will establish a robust supply chain from production in India to consumption in Japan, paving the way for future collaborations in the green energy sector,” stated Minister Joshi.

The Minister also mentioned that a tender for 750,000 tonnes per annum (TPA) of Green Ammonia is currently open, with additional tenders for a 450,000 TPA capacity also underway. These initiatives are part of India’s broader strategy to incentivize the production of over a million tonnes per annum of Green Hydrogen, demonstrating the country’s commitment to scaling up green energy production.

Joshi expressed confidence that this agreement is just the beginning of India’s expanding role in the global green energy market, with future projects expected to be even more ambitious and impactful.

This agreement underscores India’s growing prominence in the global green energy sector and reflects the Government of India’s unwavering support for renewable energy initiatives. The collaboration with Japan highlights India’s expertise and commitment to sustainable development and energy independence. 
(BusinessLine)

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