Sembcorp Green Hydrogen Pte. Ltd., a subsidiary of Sembcorp Industries, has officially signed a Heads of Terms (HoT) agreement with Sojitz Corporation and Kyushu Electric Power Co., Inc. This significant milestone paves the way for the Consortium to finalize a definitive green ammonia offtake agreement.
This development follows the Consortium’s Memorandum of Understanding announced on December 18, 2023, aimed at exploring the supply of green ammonia from India to Japan. As the lead developer and operator of the project, Sembcorp plans to leverage renewable energy sources to produce an initial 200,000 metric tonnes per annum of green ammonia in India. The project has secured land in India following successful feasibility and preliminary Front-end Engineering Design studies.
The HoT signing ceremony took place at the Indo-Pacific Economic Framework (IPEF) Clean Economy Investor Forum and was witnessed by dignitaries including Mr. Ken Saito, Minister of Economy, Trade and Industry of Japan; Dr. Tan See Leng, Second Minister for Trade and Industry of Singapore; and Shri Sunil Barthwal, Commerce Secretary, Ministry of Commerce and Industry, Government of India.
This collaboration between Japan, Singapore, and India marks a significant cross-border initiative aimed at accelerating the development of a low-carbon supply chain and promoting the transition to a clean economy in the region. It underscores Sembcorp’s commitment to driving energy transition and leveraging its expertise and track record in India, where it maintains a gross renewables portfolio of 4.7GW.
The signing of the HoT is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending December 31, 2024
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