In a significant development for renewable energy, India and Japan have signed their first project offtake agreement to export green ammonia. The deal, signed on Tuesday in the presence of Minister of New & Renewable Energy Pralhad Joshi, represents a major step in India’s strategy to position itself as a global leader in the production of green hydrogen and ammonia.
The Heads of Terms (HoT) agreement was formalised between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power, and NYK Line. This collaboration establishes a cross-border supply chain that will see green ammonia produced in India and exported to Japan. The Ministry of New & Renewable Energy (MNRE) emphasised that this partnership strengthens energy ties between the two nations, driven by a mutual commitment to sustainable energy.
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Sembcorp Industries will lead the production of green ammonia in India by utilising renewable energy sources. Kyushu Electric Power has committed to incorporating this green ammonia into its energy mix, aiming to reduce coal consumption at its thermal power plants in Japan.
Sojitz Corporation will act as the business intermediary, ensuring a seamless connection between the producer and the off-taker. NYK Line will oversee the maritime transportation of the green ammonia from India to Japan, underscoring the logistical coordination necessary for this international collaboration.
Minister Pralhad Joshi announced that a tender for the production of 7.5 lakh tonnes per annum (TPA) of green ammonia is currently active, with additional tenders for 4.5 lakh TPA capacity also in progress. These efforts are part of India’s broader strategy to incentivise the production of over a million tonnes per annum of green hydrogen, highlighting the nation’s rapid expansion in green energy production.
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Minister Joshi expressed confidence in India’s growing influence in the global green energy sector, stating that this agreement marks the beginning of more ambitious projects that will further solidify India’s leadership in the renewable energy market.
This agreement not only reinforces India’s role as a key player in the global green energy landscape but also reflects the government’s steadfast support for green hydrogen and renewable energy initiatives. The collaboration with Japan showcases India’s expanding expertise and commitment to sustainable development and energy independence.
