Partnership for Green Ammonia Supply Chain: Japan's Move Towards Decarbonization
Key Ideas
  • Sojitz, Kyushu Electric, and Sembcorp partner to supply 200,000 metric tonnes of green ammonia annually from India to Japan starting from the latter half of the 2020s.
  • The collaboration aims to support Japan's decarbonization efforts by introducing cost-effective green energy and establishing a stable, diversified supply chain for green energy in India.
  • The agreement signifies contributions towards Japan's shift to greener energy, ensuring a steady energy supply by diversifying sources and establishing a new supply chain in India.
Sojitz Corporation, Kyushu Electric Power Co., and Sembcorp Green Hydrogen Pte. Ltd. have signed a term sheet to supply 200,000 metric tonnes of green ammonia annually from India to Japan, specifically targeting industrial off-takers in Japan's Kyushu region. This collaboration is part of the global movement towards carbon neutrality, emphasizing the transition to clean energy sources. Discussions between Sojitz and Sembcorp began in 2022, focusing on collaborations in infrastructure and new energy business areas for decarbonization. Leveraging India's renewable energy resources and Sembcorp's project development expertise, the production of price-competitive green ammonia will commence in 2023. The partnership aims to provide Japan with cost-effective green energy, aiding in the country's decarbonization efforts, while simultaneously establishing a stable, diversified supply chain for green energy in India. By diversifying energy sources and creating a new supply chain, the collaboration contributes significantly to Japan's greener energy shift and ensures a reliable energy supply. This initiative highlights the importance of international partnerships in advancing sustainable energy practices and achieving global carbon reduction goals.
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