Japan Certifies IHI-ACME Low-Carbon Ammonia Supply Chain Project From India

IHI Corporation, along with Kobelco Power Kobe, Inc., Sumitomo Chemical Co., Ltd., Nippon Beet Sugar Manufacturing Co., Ltd., Hokkaido Electric Power Co., Inc., Mitsubishi Gas Chemical Company, Inc., and UBE Corporation, has received official certification from the Japanese government for its plan to import and use low-carbon ammonia produced in India. The certification has been granted under the “Support focusing on the price gap” scheme established through Japan’s Hydrogen Society Promotion Act by the Minister of Economy, Trade and Industry and the Minister of Land, Infrastructure, Transport and Tourism.

The project is an important step toward building a reliable low-carbon ammonia supply chain between India and Japan. Under the plan, IHI will source low-carbon ammonia from a manufacturing project being jointly developed with India’s ACME Group in Odisha. The ammonia will then be transported to Japan, where it will be supplied to the six partner companies for different industrial uses.

The imported low-carbon ammonia will be used as a cleaner fuel for power generation and as a raw material in chemical manufacturing and other industrial processes. By replacing conventional fossil fuel-based alternatives, the companies aim to reduce carbon emissions and support Japan’s long-term decarbonization goals.

The certification is considered a major milestone in the development of Japan’s ammonia value chain, which is expected to expand from fiscal year 2030 onward. The participating companies plan to steadily increase the use of low-carbon ammonia and contribute to the country’s transition toward a carbon-neutral society.

As part of the project, IHI will be responsible for purchasing the low-carbon ammonia produced in India and ensuring its safe and stable supply to customers in Japan. The company also plans to develop the required infrastructure for receiving, storing, and distributing ammonia across the country. In addition, IHI intends to use low-carbon ammonia at its own facilities to further support its decarbonization efforts.

The Japanese government’s price support scheme has been introduced to bridge the cost gap between low-carbon hydrogen and ammonia products and conventional fuels. Under the program, certified suppliers may receive financial support from the Japan Organization for Metals and Energy Security (JOGMEC), helping accelerate the commercial adoption of clean hydrogen and ammonia.

The ACME Group, one of India’s leading renewable energy companies, is developing the Odisha project using renewable energy to produce green hydrogen and low-carbon ammonia. The collaboration highlights the growing clean energy partnership between India and Japan and is expected to strengthen the global transition toward sustainable energy solutions.