Home › Business ›Sojitz, Kyushu Electric, and Sembcorp Partner to Supply Green Ammonia from India to Japan
Sojitz, Kyushu Electric, and Sembcorp Partner to Supply Green Ammonia from India to Japan
The term sheet outlines the annual production and supply of 200,000 metric tonnes of green ammonia from the latter half of the 2020s, targeted mainly for industrial off-takers in Japan's Kyushu region.
June 10, 2024. By Abha Rustagi
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Sojitz Corporation, Kyushu Electric Power Co., and Sembcorp Green Hydrogen Pte. Ltd., a subsidiary of Sembcorp Industries, have signed a term sheet for the supply of green ammonia produced in India to Japanese off-takers.
With the global movement towards carbon neutrality gaining momentum, the transition to clean energy sources has become increasingly critical. Discussions between Sojitz and Sembcorp began in 2022, focusing on potential collaborations in infrastructure and new energy business areas aimed at decarbonization.
The production of price-competitive green ammonia will leverage India's ample renewable energy resources and extensive land area, utilising Sembcorp's expertise in project development and operations within the country. Starting in 2023, Sojitz, Sembcorp, and Kyushu Electric have been jointly planning a project to produce green ammonia for supply to Japanese off-takers.
The term sheet outlines the annual production and supply of 200,000 metric tonnes of green ammonia from the latter half of the 2020s, targeted mainly for industrial off-takers in Japan's Kyushu region. This collaboration aims to support Japan’s decarbonization efforts by introducing cost-effective green energy and establishing a stable, diversified supply chain for green energy in India.
Through this agreement, Sojitz and its partners are not only contributing to Japan's shift towards greener energy but also ensuring a steady energy supply by diversifying sources and establishing a new supply chain in India.
With the global movement towards carbon neutrality gaining momentum, the transition to clean energy sources has become increasingly critical. Discussions between Sojitz and Sembcorp began in 2022, focusing on potential collaborations in infrastructure and new energy business areas aimed at decarbonization.
The production of price-competitive green ammonia will leverage India's ample renewable energy resources and extensive land area, utilising Sembcorp's expertise in project development and operations within the country. Starting in 2023, Sojitz, Sembcorp, and Kyushu Electric have been jointly planning a project to produce green ammonia for supply to Japanese off-takers.
The term sheet outlines the annual production and supply of 200,000 metric tonnes of green ammonia from the latter half of the 2020s, targeted mainly for industrial off-takers in Japan's Kyushu region. This collaboration aims to support Japan’s decarbonization efforts by introducing cost-effective green energy and establishing a stable, diversified supply chain for green energy in India.
Through this agreement, Sojitz and its partners are not only contributing to Japan's shift towards greener energy but also ensuring a steady energy supply by diversifying sources and establishing a new supply chain in India.
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