Sembcorp Green Hydrogen, a subsidiary of Sembcorp Industries, has signed a term sheet with Sojitz Corp. and Kyushu Electric Power to supply green ammonia produced in India to Japanese industrial off-takers.
The collaboration aims to produce an initial 200,000 metric tonnes per annum of green ammonia in India using renewable energy. Sojitz and Kyushu Electric will distribute this green ammonia primarily in the Kyushu region of Japan from the latter half of the 2020s. The project is expected to bolster Japan’s decarbonization efforts by providing cost-competitive green ammonia, promoting the adoption of green energy, and establishing a stable and diversified energy supply chain.
The green ammonia will be produced using renewable energy sources, emphasizing the integration of advanced electrolysis technologies to generate hydrogen. This hydrogen will then be combined with nitrogen to produce ammonia, a process that requires significant amounts of renewable electricity. The use of electrolysis ensures that the hydrogen production is carbon-free, aligning with global efforts to reduce greenhouse gas emissions.
The market for green ammonia is growing, particularly in industrial sectors such as fertilizer production and as a fuel for maritime and aviation industries. The initial production of 200,000 metric tonnes per annum in India represents a substantial contribution to this emerging market. By establishing a reliable supply of green ammonia, the partnership aims to meet the increasing demand for sustainable energy solutions in Japan.
Solar Energy Corporation of India (SECI) has also launched a tender to produce and supply green ammonia to leading fertilizer manufacturers in India. The selection of developers will be conducted through an e-bidding and e-reverse auction process, aiming to allocate a total green ammonia production capacity of 539,000 metric tonnes per annum.
Comparing this project to other international initiatives highlights its significance. For instance, China is rapidly expanding its hydrogen electrolyzer capacity, aiming to produce 220,000 tons per annum of green hydrogen by 2025. This capacity expansion underscores the global race to scale up hydrogen production and its derivatives.
Similarly, the European Union’s Clean Hydrogen Partnership has signed a cooperation agreement with Japan’s New Energy and Industrial Technology Development Organization (NEDO) to enhance knowledge and capacity in the hydrogen sector. These global efforts emphasize the collaborative nature and the competitive landscape of green hydrogen and ammonia production.
