Sembcorp Forge Partnerships to Supply Green Ammonia from India to Japan
Japan has set an ambitious target of importing 3 million tonnes of ammonia for fuel by 2030, with a projected surge to 30 million tonnes by 2050.
December 18, 2023. By Abha Rustagi
Through a Memorandum of Understanding (MOU), the trio aims to explore opportunities for the production of green ammonia in India, destined for export to Japan.
The MOU, unveiled at the Asia Zero Emission Community Leaders’ Meeting on December 16, 2023, underscores the commitment of the involved parties to the development of cross-border hydrogen supply chains.
Sojitz, a prominent Japanese conglomerate with energy trading and investment businesses, and Kyushu Electric, a major energy provider in the Kyushu region of Japan, are pivotal partners in this venture.
Japan has set an ambitious target of importing 3 million tonnes of ammonia for fuel by 2030, with a projected surge to 30 million tonnes by 2050. Recognizing the role of green ammonia as a crucial energy source in achieving a carbon-neutral power supply, this partnership aligns with Japan's broader objective of attaining net-zero emissions by 2050.
The consortium, led by Sembcorp as the primary developer, plans to explore and pursue opportunities to supply green ammonia to Japan. Conditional upon a final investment decision and the completion of supply arrangements, the parties intend to embark on the construction of green ammonia facilities in India.
Sojitz and Kyushu Electric will leverage their expertise in energy trading and supply to manage the transportation of green ammonia to Japan and secure off-takers in the Japanese market.
This collaborative effort signifies a collective push by Japan, India, and Singapore towards the establishment of sustainable and interconnected hydrogen supply networks.
As a key player in the renewables sector in Asia, Sembcorp is actively engaged in collaborations to advance hydrogen and its derivatives as a pathway towards a low-carbon future. The MOU leverages Sembcorp's substantial presence in India, where it boasts a gross renewables portfolio of 3.7 GW, reflecting the company's strategic shift from brown to green energy.
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