India signs first-ever deal for the export of Green Ammonia to Japan

Under the agreement signed in the presence of New and Renewable Energy Minister Prahlad Joshi, Singapore-headquartered Sembcorp Industries will lead the production of green ammonia in India, utilising renewable energy sources also, Kyushu Electric Power Co. has committed to integrating this green ammonia into its energy mix, partially replacing coal consumption at its thermal power plants in Japan.

The Union Minister of New and Renewable Energy, Pralhad Joshi, chaired the signing ceremony of the first-ever agreement for the export of Green Ammonia from India to Japan. The project offtake agreement marks a significant step forward in India’s journey to becoming a global leader in green hydrogen and ammonia production. This agreement represents the first such collaboration between India, Singapore and Japan, underscoring India’s growing prominence in the global green energy landscape.

Singapore-headquartered Sembcorp Industries will lead the production of green ammonia in India, utilising renewable energy sources. Kyushu Electric Power Co. has committed to integrating this green ammonia into its energy mix, partially replacing coal consumption at its thermal power plants in Japan. Sojitz Corporation will act as the business intermediary, facilitating the connection between the ammonia producer and the off-taker. NYK Line will oversee the maritime transportation of green ammonia from India to Japan.

Speaking at the event, Pralhad Joshi emphasised the importance of this partnership, stating, “Today is a historic day as we mark the first-ever agreement for the supply of Green Ammonia from India to Japan. 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.”

The Minister highlighted India’s rapid progress in green hydrogen and renewable energy under the leadership of Prime Minister Narendra Modi. He reiterated India’s commitment to becoming a global leader in green hydrogen and ammonia production, leveraging partnerships, building robust regulatory frameworks, and making substantial investments in the sector.

Pralhad Joshi also announced that a tender for 7.5 lakhs TPA of Green Ammonia is currently live, with additional tenders for 4.5 lakh TPA capacity also floated. These efforts are part of India’s broader strategy to award incentives for the production of over a million tonnes per annum of Green Hydrogen, demonstrating India’s capability and intent to scale up green energy production at an unprecedented pace.

The Minister further spoke about the deep cultural and people-to-people ties between India, Japan, and Singapore, noting that the three 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, with future endeavours expected to be even more ambitious and impactful.

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 is a testament to India’s growing expertise and commitment to sustainable development and energy independence.

The signing ceremony for heads of terms (HoT) for the cross-border green ammonia supply from India to Japan was also graced by Simon Wong, High Commissioner of the Republic of Singapore to India; Yuta Hikichi, First Secretary, Embassy of Japan in India; Ajay Yadav, JS, MNRE; and Vipul Tuli, Chairman – South Asia & CEO – Hydrogen Business, Sembcorp Industries. The Heads of Terms (HoT) agreement was signed between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co., and NYK Line, solidifying a cross-border green ammonia supply partnership from India to Japan. This agreement represents the first such collaboration between the two nations, underscoring India’s growing prominence in the global green energy landscape.