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Groundbreaking Development India and Japan Sign Agreement for Green Ammonia Export

Vinodhini Harish

28 Nov 2024

1. Sembcorp Industries: Spearheading Green Ammonia Production
   
   The role of Sembcorp Industries is to lead the production of Green ammonia in India using renewable energy sources like solar and wind, as opposed to conventional ammonia that relies on fossil fuels.
   
   Sembcorp will build and operate production facilities that harness renewable energy to power the processes required for green ammonia production thereby ensuring the process is carbon-neutral.
   
   With the agreement's backing, India will be transformed into a hub for sustainable green ammonia production, helping the country tap into its renewable energy potential while reducing its dependence on fossil fuels.
    
2. Kyushu Electric Power: Integrating Green Ammonia into Japan’s Energy Mix
    
   • Kyushu Electric Power Systems is a major utility provider in Japan which will utilize the green ammonia supplied by India in its energy systems. The industry will utilize green ammonia by mixing it with coal or using it as a substitute in thermal power plants operated by Kyushu Electric Power.
   • By using this, the utility can gradually reduce its dependence on coal, a high-emission fuel, while lowering overall greenhouse gas emissions.
   • The energy transition goal of Japan is to replace conventional fossil fuels with cleaner alternatives, and this agreement is in line with the goals to achieve carbon neutrality by 2050.
      
3. Sojitz Corporation: acting as the business intermediary:
   
   Sojitz Corporation is a global trading and investment company that will be acting as a link between the ammonia producer (Sembcorp) and end-user (Kyushu Electric Power)
   
   Sojitz will handle the business arrangements that are required to ensure a smooth flow of green ammonia such as negotiating contracts and managing financial transactions while addressing logistical and operational challenges.
   
   The company will also ensure that the ammonia meets the required quality and regulatory standards. This intermediary role ensures a seamless supply chain between India and Japan, fostering trust and operational efficiency.
    
4. NYK line: Managing maritime transportation:
   
   NYK line is one of Japan’s leading shipping companies that will oversee the transportation of green ammonia from the production sites in India to the energy facilities in Japan.
   
   Green ammonia being in the gas or liquid state at extremely low temperatures required specialized ships with appropriate storage and safety mechanisms while transporting. NYK line will ensure safe and efficient maritime transport that includes loading, shipping and unloading at Japanese ports.
   
   The component is critical to the supply chain thereby enabling the export of India’s green ammonia to Japan without disruptions.