Sembcorp, Kyushu tie up to export green ammonia from India facility

Singaporean renewable energy firm Sembcorp Industries has signed a deal with Japanese firms, including Kyushu Electric Power Co., to transport green ammonia from its facility in India to Japan. Nippon Yusen Kabushiki Kaisha (NYK) will be the shipping partner, the companies said in a statement.

The deal was signed in the presence of new and renewable energy minister Pralhad Joshi; Singaporean high commissioner to India Simon Wong; and first secretary in the embassy of Japan in India Yuta Hikichi.

“The heads of terms agreement was signed between Sembcorp Industries, Sojitz Corp., Kyushu Electric Power Co., and NYK Line, solidifying a cross-border green ammonia supply partnership from India to Japan,” the ministry of new and renewable energy said in a statement. “This agreement represents the first such collaboration between the two nations, underscoring India’s growing prominence in the global green energy landscape.”

Kyushu Electric Power Co. will use ammonia to reduce coal consumption at its thermal power plants in the Japanese region, also known as Kyushu.

“Sembcorp, as the lead developer of the proposed project (in Tamil Nadu), will leverage its strong capabilities demonstrated through its existing renewables portfolio of 4.7GW in India, to produce competitively priced green ammonia in India,” the statement said. “The front-end engineering and design work for the green ammonia plant in Tuticorin, Tamil Nadu, has commenced.”

“Sojitz Corp. will act as the business intermediary, facilitating the connection between the ammonia producer and the offtaker. NYK Line will oversee the maritime transportation of green ammonia from India to Japan,” the ministry said.

Joshi said a tender for 750,000 tons of green ammonia per annum is currently live, with additional tenders for 450,000 tons capacity also floated as part of India’s broader strategy to award incentives for the production of over a million tonnes per annum of green hydrogen.

The deal is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the fiscal ending December 2024, the company said.

Under the National Green Hydrogen Mission, the government aims to produce 5 million metric tons of green hydrogen annually by 2030. Green hydrogen is converted into green ammonia for easy transport.