India and Japan have inked a groundbreaking agreement for the export of green ammonia, a move that underscores India’s increasing prominence in the global green energy arena. The deal, sealed on August 21, 2024, represents India’s inaugural green ammonia export to Japan, underscoring the importance of fostering enduring partnerships in sustainable energy initiatives.
The Ministry of New & Renewable Energy (MNRE) announced the pivotal agreement, emphasizing the involvement of key players such as Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co., and NYK Line. These entities have signed a Heads of Terms (HoT) agreement, solidifying a cross-border green ammonia supply partnership from India to Japan. Sembcorp Industries, a Singapore-based energy company, will lead the production of green ammonia in India, leveraging renewable energy sources to create a cleaner alternative to traditional fuels.
Kyushu Electric Power, a prominent utility company in Japan, is set to integrate green ammonia into its energy mix, aiming to reduce carbon emissions by substituting coal with this sustainable fuel. This strategic move aligns with Japan’s broader objective of transitioning away from fossil fuels towards cleaner energy sources. Sojitz Corporation, a Japanese trading company, will facilitate the business dealings, ensuring a seamless connection between Sembcorp and Kyushu. Meanwhile, Nippon Yusen Kaisha (NYK), a Japanese shipping firm, will oversee the transportation of green ammonia from India to Japan, establishing a reliable supply chain between the two nations.
Minister of New & Renewable Energy, Pralhad Joshi, hailed the agreement as a historic milestone, marking the first-ever pact for the supply of Green Ammonia from India to Japan. He emphasized the significance of establishing a robust supply chain from production in India to consumption in Japan, setting the stage for future collaborations in the green energy sector. India has already initiated a tender for 7.5 lakh tons of green ammonia, with an additional surplus capacity of 4.5 lakh TPA. Mr. Joshi revealed plans to incentivize the production of over a million tons of green hydrogen annually, showcasing India’s commitment to expanding green energy production swiftly.
The Indian government, through the Ministry of New & Renewable Energy, has been actively promoting green hydrogen and ammonia as part of its broader strategy to reduce carbon emissions and achieve energy independence. The approval of the National Green Hydrogen Mission with a budget of ₹19,744 crore underscores India’s ambition to become a global leader in the production, utilization, and export of Green Hydrogen and its derivatives. By 2030, the mission aims to produce 5 million metric tons (MMT) of Green Hydrogen annually, with substantial allocations made for the upcoming years to support this ambitious goal.
The collaborative agreement between India and Japan sets the stage for future partnerships in the green energy sector, as both countries strive to diminish their carbon footprints and transition to sustainable energy sources. By leveraging each other’s strengths and expertise, they can establish a robust supply chain for green ammonia, paving the way for further agreements that will enhance their positions in the global market. Japan stands to benefit from a reliable and sustainable source of green ammonia, aiding in the reduction of carbon emissions and lessening dependence on fossil fuels.
ACME, a key player in India’s green energy landscape, has erected the nation’s first green hydrogen and ammonia plant, marking a significant milestone in the country’s renewable energy journey. With a solar-to-ammonia pilot plant operational in Bikaner, Rajasthan, since November 2021, ACME is actively developing projects targeting both the domestic market and the global ammonia energy sector. By 2030, ACME aims to rank among the world’s top three renewable energy producers and produce 10 MTs of renewable ammonia annually from its global facilities.
In conclusion, the India-Japan Green Ammonia Agreement represents a significant stride for both nations, emphasizing a shared dedication to sustainability and laying a sturdy foundation for future collaboration in the burgeoning green energy sector.
