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, 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.
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.
