India aims to become global leader in green hydrogen and ammonia production, says Minister Joshi

Pralhad Joshi

The recent agreement for the export of green ammonia from India to Japan will pave way for setting up a robust supply chain and lead to future collaborations in the green energy sector, Minister of New and Renewable Energy Pralhad Joshi said on August 20.

Joshi was speaking during an event for signing of a Heads of Terms (HoT) agreement between Sembcorp Industries, Sojitz Corporation, Kyushu Electric Power Co., and NYK Line, for green ammonia supply partnership from India to Japan.

Under this agreement, which was originally announed in June, Sembcorp Industries will lead the production of green ammonia in India, utilizing renewable energy sources. Kyushu Electric Power Co. has committed to integrating this green ammonia into their energy mix, partially replacing coal consumption at their thermal power plants in Japan. Sojitz Corporation will act as the business intermediary, facilitating the connection between the ammonia producer and the offtaker. NYK Line will oversee the maritime transportation of the green ammonia from India to Japan.

"Today is a historic day as we mark the first-ever agreement for the supply of Green Ammonia from India to Japan. This agreement will help establish a robust supply chain from production in India to consumption in Japan, paving the way for future collaborations in the green energy sector," Joshi said, according to a government statement.

The minister also highlighted India's progress in green hydrogen and renewable energy under Prime Minister Shri Narendra Modi. The country aims to become a global leader in green hydrogen and ammonia production, and seeks to leverage partnerships, building robust regulatory frameworks, and making substantial investments in the sector, he added.

Joshi also said that a tender for 7.5 lakh TPA of green ammonia is currently live, with additional tenders for 4.5 lakh TPA capacity also floated. These efforts are part of India’s broader strategy to award incentives for the production of over a million tonnes per annum of Green Hydrogen, demonstrating India’s capability and intent to scale up green energy production at an unprecedented pace.