The Ministry of New and Renewable Energy (MNRE) announced that India and Japan have signed a significant Purchase agreement for green ammonia exports. The deal, concluded on August 21, 2024, marks India’s first green ammonia export to Japan. This agreement strengthens India’s growing role in the global green energy market and the importance of long-term partnerships in the field of sustainable energy.
The main actors of this agreement
The press release states: Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co. and NYK Line have signed a Heads of Terms (HoT) agreement establishing a cross-border partnership for the supply of green ammonia from India to Japan.
Singapore-based energy company Sembcorp Industries will drive the production of green ammonia in India. In particular, the green ammonia will be manufactured By using renewable energy sources, it represents a cleaner alternative to traditional fuels.
Kyushu Electric Power, a renowned Japanese energy utility, plans to use green ammonia in its energy mix. The company will partially replace coal with green ammonia in its thermal power plantsGoal to reduce carbon emissions. Simply put Kyushu is the buyer. This step supports Japan’s The larger goal is to move away from fossil fuels and switch to cleaner energy sources.
Sojitz Corporation, the Japanese trading group Pursue will broker the deal and play an important role in connecting Sembcorp with Kyushu. Sojitz’s Commitment ensures that the The transaction is smooth and efficient, closing the gap between production and consumption.
The Japanese shipping company Nippon Yusen Kaisha (NYK) will transport the green ammonia from India to Japan. It will ensure the safe and timely delivery of the green ammonia, thus establishing a reliable supply chain between the two countries.
What are the further implications of this deal?
Minister for New and Renewable Energy, Pralhad Joshi, commented:
“TToday is a historic day as we celebrate the first agreement to supply green ammonia from India to Japan. This agreement will help build a robust supply chain from production in India to consumption in Japan and pave the way for future green energy collaborations.”
He further announced that India has already issued a tender for 750,000 tonnes of green ammonia And In addition, a surplus of 450,000 TPA capacity was reported.
Mr. Joshi also noted that these efforts are in line with India’s larger plan to promote the production of over one million tonnes of green hydrogen per year. It shows India’s Commitment and skills to rapidly expand the production of green electricity.
The Indian government, under the Ministry of New and Renewable Energy (MNRE), is actively promoting the production of green hydrogen and ammonia as an integral part of its broader strategy to reduce carbon emissions and achieve energy independence.
Last Year In In January, the Union Cabinet approved the National Green Hydrogen Mission with a budget of Rs 19,744 crore. The aim of the mission is to establish India as a world leader in the production, use and export of Green hydrogen and its derivatives. The aim is to produce 5 million tonnes (MMT) of green hydrogen annually by 2030. Under this mission, Rs 600 crore has been allocated in various categories for 2024-25. The is clear evidence of India’s Commitment to achieving its net zero goals.
Working together towards success with green ammonia
This agreement between India and Japan is expected to pave the way for future cooperation in the field of green energy. Both countries are committed to reducing their carbon footprint and switching to more sustainable energy sources. By working together, they can benefit each other. Other Strengths and expertise to create a robust green ammonia supply chain.
As India continues to expand its green energy capabilities, more such agreements are likely to follow. This would only strengthen India’s position in the global market. Japan, On the other hand, they benefit from a reliable and sustainable source of green ammonia. The would help Japan reduce carbon emissions Emissions, and reduce dependence on fossil fuels.
ACME has India’s first green hydrogen and ammonia plant, which is a significant milestone. Since November 2021, they have been operating a pilot plant for producing ammonia from solar energy in Bikaner, Rajasthan. The Projects in The development targets both the Indian market and the global ammonia energy market. By 2030, ACME aims to be one of the worldwide One of the three largest producers of renewable energy and produces 10 tons of renewable ammonia annually in its plants worldwide.
In conclusion, the India-Japan Green Ammonia Agreement represents a significant step forward for both countries. Overall, this partnership underscores the shared commitment to sustainability and lays a solid foundation for future cooperation in the fast-growing green energy sector.
