India signs first-ever green ammonia export agreement with Japan

• Published 4 months ago
• By SuperAdmin

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

This collaboration is the first of its kind between the two countries, highlighting India’s growing role in the global green energy landscape.

New Delhi: In a significant development for India’s green energy sector, 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. This project offtake agreement marks a crucial step forward in India’s aim to become a global leader in green hydrogen and ammonia production.

The Heads of Terms (HoT) agreement was signed between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co., and NYK Line, establishing a cross-border green ammonia supply partnership from India to Japan. This collaboration is the first of its kind between the two countries, highlighting India’s growing role in the global green energy landscape.

Under the agreement, Sembcorp Industries will lead the production of green ammonia in India using renewable energy sources. Kyushu Electric Power Co. will integrate this green ammonia into their energy mix, replacing part of their coal consumption at thermal power plants in Japan.

Sojitz Corporation will act as the intermediary, connecting the ammonia producer and the offtaker, while NYK Line will manage the maritime transportation of the green ammonia from India to Japan.

During the event, Pralhad Joshi emphasized the significance of the 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 also announced that a tender for 7.5 lakh 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 rapidly.

Pralhad Joshi further highlighted the deep cultural and people-to-people ties between India, Japan, and Singapore, noting ongoing collaborations in energy efficiency and renewable energy technologies. He expressed confidence that this agreement is just the beginning, with future endeavors expected to be even more ambitious and impactful.

This agreement underscores India’s position as a key player in the global green energy market and reflects the Government of India’s strong support for green hydrogen and renewable energy initiatives.