India-Japan Agreement: Pioneering Green Ammonia Export Partnership
Key Ideas
  • The signing ceremony marked a significant milestone in India's green energy journey, showcasing the country's commitment to becoming a global leader in green hydrogen and ammonia production.
  • Partners Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co., and NYK Line solidified an agreement for the export of green ammonia to Japan, highlighting cross-border collaboration.
  • Minister Pralhad Joshi emphasized the historical importance of the agreement, emphasizing the establishment of a robust supply chain from India to Japan and India's intent to scale up green energy production.
  • India is actively promoting the production of green ammonia through live tenders, with plans to award incentives for over a million tonnes per annum of Green Hydrogen to accelerate the country's green energy transition.
The Union Minister of New and Renewable Energy, Pralhad Joshi, recently chaired a signing ceremony marking the first-ever agreement for the export of Green Ammonia from India to Japan. This agreement, a project offtake agreement, is a significant step forward in India's ambition to become a global leader in the production of green hydrogen and ammonia. The Heads of Terms (HoT) agreement was signed by Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co., and NYK Line, solidifying a partnership for the cross-border supply of green ammonia from India to Japan. This collaboration between India and Japan highlights India's increasing importance in the global green energy landscape. Sembcorp Industries will lead the production of green ammonia in India using renewable energy sources, which will be integrated into the energy mix of Kyushu Electric Power Co., partially replacing coal consumption in Japan. Sojitz Corporation will serve as the intermediary between the ammonia producer and the offtaker, while NYK Line will manage the maritime transportation of the green ammonia. Minister Pralhad Joshi emphasized the significance of this partnership, noting its role in establishing a strong supply chain from production in India to consumption in Japan. He also announced live tenders for the production of Green Ammonia in India, highlighting the country's commitment to scaling up green energy production. India's endeavors to encourage green energy production through incentives and significant investments demonstrate its determination to lead in the green energy sector under the leadership of Prime Minister Narendra Modi.
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