Sembcorp will export green ammonia from India to Japan

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Sembcorp Green Hydrogen has announced that its preparing to export green ammonia produced from green hydrogen from India to Japan. The company is a wholly-owned subsidiary of Sembcorp Industries.

Sembcorp declared the signing of a Memorandum of Understanding (MoU) with Sojitz Corporation (Sojitz) and Kyushu Electric Power Co. to explore opportunities for green ammonia production in India for export to Japan. Sojitz, a Japanese conglomerate with energy trading and investment businesses, and Kyushu Electric, a major utility providing power in the Kyushu region of Japan, will collaborate with Sembcorp in this endeavor.

Under the MoUs, Sembcorp will lead the development of green ammonia facilities in India, while Sojitz and Kyushu Electric will utilize their energy trading and supply capabilities to manage the transport of green ammonia to Japan and secure offtakers in the Japanese market.

This initiative aligns with the government’s goal of making India a green hydrogen export hub, as green hydrogen is a crucial tool for decarbonizing power, mobility, and industrial sectors. Due to the challenges and risks associated with transporting green hydrogen, it is converted into green ammonia for easier and safer liquid transport, for use as fuel or feedstock.

India, responsible for 8% of global ammonia production, aims to achieve an annual green hydrogen production capacity of 5 million tonnes by 2030, with a significant portion allocated to manufacturing green ammonia. Sembcorp’s involvement supports India’s green hydrogen aspirations and contributes to Japan’s efforts to decarbonize its power mix, aiming to import 3 million tonnes of ammonia for fuel by 2030 and anticipating a demand increase to 30 million tonnes by 2050.

These agreements leverage Sembcorp’s significant presence in India, boasting a gross renewables portfolio of 3.7 gigawatts, and align with the company’s strategy to transition its portfolio from brown to green energy.