India and Japan on Tuesday signed their first project offtake agreement for the export of green ammonia to the latter in the presence of Minister of New & Renewable Energy Pralhad Joshi.
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 Ministry of New & Renewable Energy (MNRE) said.
The Heads of Terms (HoT) agreement was signed between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power and NYK Line, solidifying a cross-border green ammonia supply partnership from India to Japan, it added.
“This agreement represents the first such collaboration between the two nations, underscoring India’s growing prominence in the global green energy landscape,” the Ministry noted.
Sembcorp Industries will lead the production of green ammonia in India, utilising renewable energy sources. Kyushu Electric Power has committed to integrating this green ammonia into its energy mix, partially replacing coal consumption at its thermal power plants in Japan.
Sojitz Corporation will act as the business intermediary, facilitating the connection between the ammonia producer and the off-taker. NYK Line will oversee the maritime transportation of green ammonia from India to Japan.
“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,” Joshi said.
The Minister informed that a tender for 7.5 lakh tonnes per annum (TPA) of Green Ammonia is currently live, and additional tenders for 4.5 lakh TPA capacity have also been 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, he added.
The Minister expressed confidence that this agreement is just the beginning of India’s expanding capabilities in the green energy sector, with future endeavours expected to be even more ambitious and impactful.
This agreement reinforces India’s position as a key player in the global green energy market and 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.
