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India Signs Landmark Agreement To Export Green Ammonia To Japan, Strengthening Global Green Energy Ties

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A file photo of India Signs Landmark Agreement to Export Green Ammonia to Japan, Strengthening Global Green Energy Ties

In a landmark move, India has taken a significant step towards becoming a global leader in green hydrogen and ammonia production with the signing of the first-ever agreement for the export of Green Ammonia to Japan. The Union Minister of New and Renewable Energy, Shri Pralhad Joshi, chaired the signing ceremony, which marks a pivotal moment in India’s green energy journey.

The Heads of Terms (HoT) agreement for the cross-border supply of green ammonia from India to Japan was signed between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co., and NYK Line. This collaboration represents the first such partnership between the two nations, highlighting Indiaโ€™s growing prominence in the global green energy landscape. The signing ceremony was also attended by H.E. Mr. Simon Wong, High Commissioner of the Republic of Singapore to India; Mr. Yuta Hikichi, First Secretary at the Embassy of Japan in India; Mr. Ajay Yadav, Joint Secretary at the Ministry of New and Renewable Energy (MNRE); and Mr. Vipul Tuli, Chairman โ€“ South Asia & CEO โ€“ Hydrogen Business, Sembcorp Industries.

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Singapore-headquartered Sembcorp Industries will spearhead the production of green ammonia in India using renewable energy sources. Kyushu Electric Power Co. will incorporate this green ammonia into their energy mix, reducing coal consumption at their thermal power plants in Japan. Sojitz Corporation will act as the intermediary, facilitating the connection between the producer and the offtaker, while NYK Line will manage the maritime transportation of the green ammonia from India to Japan.

Speaking at the event, Minister Pralhad Joshi emphasized the significance of this agreement, stating, “Today is a historic day as we mark the first-ever agreement for the supply of Green Ammonia from India to Japan. This agreement will help establish a robust supply chain from production in India to consumption in Japan, paving the way for future collaborations in the green energy sector.”

The Minister also highlighted India’s rapid advancements in green hydrogen and renewable energy under the leadership of Prime Minister Shri Narendra Modi. He reaffirmed India’s commitment to becoming a global leader in these sectors through strategic partnerships, robust regulatory frameworks, and substantial investments.

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In addition, Shri Pralhad Joshi announced that a tender for 7.5 lakh tonnes per annum (TPA) of Green Ammonia is currently live, with additional tenders for 4.5 lakh TPA capacity also floated. These initiatives are part of India’s broader strategy to incentivize the production of over a million tonnes of Green Hydrogen annually, demonstrating the country’s ability to scale up green energy production rapidly.

The Minister also acknowledged the deep cultural and people-to-people ties between India, Japan, and Singapore, noting that these nations are collaborating on energy efficiency and renewable energy technologies. He expressed confidence that this agreement is just the beginning of Indiaโ€™s expanding capabilities in the green energy sector, with more ambitious projects expected in the future.

This agreement not only reinforces Indiaโ€™s position as a key player in the global green energy market but also reflects the Government of Indiaโ€™s unwavering support for green hydrogen and renewable energy initiatives. The collaboration with Japan underscores Indiaโ€™s growing expertise and commitment to sustainable development and energy independence.

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