ReNew, Japan’s JERA to set up green ammonia plant in Odisha

ReNew Energy Global and Japanese power generation company JERA Co. have signed an initial agreement to jointly explore the development of a green ammonia production plant having an annual capacity of 100,000 tons by 2030 in Paradip, Odisha. 

This project will likely use nearly 500 MW of high-capacity utilization factor (CUF) renewable energy to produce green hydrogen, a key feedstock for green ammonia. 

The project is in line with India’s ambitious National Green Hydrogen Mission that aims to produce 5 million tons of green hydrogen per year by 2030. 

JERA, which was formed after the consolidation of the fuel and thermal power departments of the Tokyo Electric Power Company and the Chubu Electric Power Company in 2015, invested $200 million for a 10% stake in ReNew Power in 2017, marking its entry into the Indian energy sector. 

The current primary agreement between both companies aligns with India’s ambitious National Green Hydrogen Mission and Japan’s clean energy transition goals. 

Listed on the Nasdaq, ReNew has set up 10 GW of clean energy assets and has a portfolio of over 13.5 GW on a gross basis as of 31 March 2023. 

Both companies will conduct a joint study to evaluate the project’s commercial viability. JERA, with expertise in building value chains, will have the right to offtake this green ammonia for Japan.

Stating that this collaboration marks an exciting time for both ReNew and JERA, Sumant Sinha, founder and chief executive officer (CEO) of ReNew, said,” This project demonstrates our commitment to accelerating the clean energy transition.” 

Sinha added that green ammonia holds immense potential in reducing carbon emissions, and once ready, the project will contribute to a cleaner future and support India’s National Green Hydrogen Mission.

Maintaining that both the companies share a bond since 2071, Yukio Kani, global CEO and chair of JERA, said, “We are pleased to expand this collaboration to the next level: the first green hydrogen and ammonia development project for JERA.” 

Kani added that this joint development agreement represents a significant milestone and an exciting advancement, moving us one step closer to realizing a decarbonized society focusing on the sustainability, affordability, and stability of future energy.