Coal news and updates

Shri Pralhad Joshi chairs the project offtake agreement signing ceremony for export of green ammonia from India to Japan

The Heads of Terms (HoT) agreement was signed between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co., and NYK Line

Posted On: 20 AUG 2024 7:15PM by PIB Delhi

The Union Minister of New and Renewable Energy, Shri Pralhad Joshi, chaired the signing ceremony of the first-ever agreement for the export of Green Ammonia from India to Japan. The project offtake agreement, marks a significant step forward in India’s journey to becoming a global leader in green hydrogen and ammonia production.

The Heads of Terms (HoT) agreement was signed between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co., and NYK Line, solidifying a cross-border green ammonia supply partnership from India to Japan. This agreement represents the first such collaboration between the two nations, underscoring India’s growing prominence in the global green energy landscape.

Sembcorp Industries will lead the production of green ammonia in India, utilizing renewable energy sources. Kyushu Electric Power Co. has committed to integrating this green ammonia into their energy mix, partially replacing coal consumption at their thermal power plants in Japan. Sojitz Corporation will act as the business intermediary, facilitating the connection between the ammonia producer and the offtaker. NYK Line will oversee the maritime transportation of the green ammonia from India to Japan.

Speaking at the event, Shri Pralhad Joshi emphasized the importance of this partnership, stating, "Today is a historic day as we mark the first-ever agreement for the supply of Green Ammonia from India to Japan. This agreement will help establish a robust supply chain from production in India to consumption in Japan, paving the way for future collaborations in the green energy sector."

The Minister highlighted India's rapid progress in green hydrogen and renewable energy under the leadership of Prime Minister Shri Narendra Modi. He reiterated India’s commitment to becoming a global leader in green hydrogen and ammonia production, leveraging partnerships, building robust regulatory frameworks, and making substantial investments in the sector.

Shri Pralhad Joshi also announced that a tender for 7.5 lakh TPA of Green Ammonia is currently live, with additional tenders for 4.5 lakh TPA capacity also floated. These efforts are part of India’s broader strategy to award incentives for the production of over a million tonnes per annum of Green Hydrogen, demonstrating India’s capability and intent to scale up green energy production at an unprecedented pace.

The Minister further spoke about the deep cultural and people-to-people ties between India, Japan, and Singapore, noting that the three countries are collaborating on energy efficiency and renewable energy technologies. He expressed confidence that this agreement is just the beginning of India’s expanding capabilities in the green energy sector, with future endeavors expected to be even more ambitious and impactful.

This agreement not only reinforces India’s position as a key player in the global green energy market but also reflects the Government of India’s steadfast support for green hydrogen and renewable energy initiatives. The collaboration with Japan is a testament to India’s growing expertise and commitment to sustainable development and energy independence.