As a leading renewables player in Asia, Sembcorp is collaborating with various partners to progress hydrogen and its derivatives as a promising pathway towards a low-carbon future
Singapore-based Sembcorp Industries announced on Monday a strategic collaboration with two Japanese companies to produce green ammonia in India, with the aim of supplying it to Japan and solidifying its role as a major green energy supplier.
Sembcorp Green Hydrogen Pte Ltd., a subsidiary of Sembcorp Industries, has signed a memorandum of understanding (MoU) with Japanese conglomerate Sojitz Corp and energy giant Kyushu Electric Power to explore potential opportunities for green ammonia production in India for export to Japan.
The collaboration is aligned with Japan's commitment to decarbonize its power supply mix and achieve net-zero emissions by 2050. Japan has set a target to import 3 million tonnes of ammonia for fuel by 2030, with the expectation that demand will rise to 30 million tonnes by 2050.
Under the MoU, the consortium will explore opportunities to supply green ammonia to Japan. Pending a final investment decision and the consortium finalising supply arrangements, the parties will proceed with the construction of green ammonia facilities in India, with Sembcorp leading the development.
Sojitz and Kyushu Electric will utilise their expertise in energy trading and supply to manage the transportation of green ammonia to Japan and secure offtakers in the Japanese market.
As a key player in the renewable energy sector in Asia, Sembcorp is actively collaborating with various partners to advance hydrogen and its derivatives as a viable pathway towards a low-carbon future. The MoU builds on Sembcorp's established presence in India, where it currently boasts a gross renewables portfolio of 3.7 GW, aligning with the company's strategic shift from brown to green energy sources.
The partnership underscores the commitment of Japan, India, and Singapore to the development of cross-border hydrogen supply chains. The MoU was presented at the Asia Zero Emission Community Leaders' Meeting on December 16, 2023, hosted by Japan’s Ministry of Economy, Trade, and Industry.
Green ammonia, produced using renewable energy and innovative methods, is emerging as a significant clean fuel source for electricity generation and maritime propulsion, marking a shift from its traditional use as a fertiliser. The collaboration reflects a collective effort to promote sustainable energy solutions on an international scale.