Sembcorp Green Hydrogen has agreed with Japanese shipping company NYK Line to transport 200,000 tonnes of green hydrogen-based ammonia from India to Japan.
As part of the agreement, Sojitz and Kyushu Electric Power are expected to sell the volumes to industrial off-takers in the Kyushu region of Japan.
The front-end engineering and design (FEED) work for Sembcorp’s Indian green ammonia plant in Tuticorin, Tamil Nadu, began this year. Sembcorp wants to produce “competitively priced” green ammonia in India powered by its 4.7GW renewables portfolio.
In December (2023), Singapore-based Sembcorp, Sojitz and Kyushu Electric entered a Memorandum of Understanding (MOU) to pursue green ammonia production opportunities in India and export to Japan.
Read more:Sembcorp targets India green ammonia exports to Japan
Vipul Tuli, Chairman for South Asia and CEO of the Hydrogen Business at Sembcorp Industries claimed the Tamil Nadu region is a “frontrunner state in realising India’s green hydrogen ambitions.”
Tan Soon Kim, Deputy Managing Director of Enterprise Singapore, added, “[This] highlights the role that Singapore companies with deep expertise can play in partnering with India along its economic development journey.
“With Japan as the end market, this project showcases the bridging role that Singapore companies can offer in 3rd country collaboration.”
In May (2024), Japan passed the Hydrogen Society Promotion Act that will provide a 15-year subsidy for Japanese-produced and imported low-carbon hydrogen.
Read more:Japan passes act promising 15-year low-carbon hydrogen subsidy
According to the Hydrogen Council, Japan will need to replace its current LNG and coal imports with hydrogen and derived fuels, such as ammonia, alongside wind and solar developments to decarbonise.
