India-Japan Green Ammonia Deal: Boosting Green Energy Collaboration
Key Ideas
  • India and Japan have signed an agreement for the export of green ammonia, a significant step in their green hydrogen and decarbonisation strategy.
  • Sembcorp Industries will lead green ammonia production in India, with Kyushu Electric Power Co. committing to integrating it into their energy mix in Japan.
  • India aims to produce 5 MMTPA of green hydrogen by 2030 and end ammonia-based fertilizer imports by 2034/35, emphasizing the shift towards sustainable energy sources.
  • The Institute for Energy Economics and Financial Analysis (IEEFA) highlights the need for integration across the hydrogen value chain to ensure cost-effective delivery, particularly focusing on green ammonia for fertilizers.
India has achieved a significant milestone by signing its first export agreement for green ammonia with Japan, marking a crucial step in advancing its green hydrogen, ammonia, and decarbonisation initiatives. The Heads of Terms (HoT) agreement involves key players like Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co., and NYK Line. Sembcorp will lead the production of green ammonia in India, while Kyushu Electric Power Co. plans to incorporate it into their energy mix in Japan, aiming to reduce coal consumption. The agreement aims to establish a robust supply chain from India to Japan, fostering future collaborations in the green energy sector. India's ambitious targets include producing 5 MMTPA of green hydrogen by 2030 and phasing out ammonia-based fertilizer imports by 2034/35 in favor of domestically produced green ammonia. The Institute for Energy Economics and Financial Analysis (IEEFA) stresses the importance of integrating different segments of the hydrogen value chain for efficient and cost-effective delivery, with a focus on utilizing green ammonia for fertilizers. This move aligns with India's vision of sustainable development and transitioning towards renewable energy sources to meet growing energy demands.
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