Sembcorp partners Sojitz and Kyushu Electric to supply Japan with green ammonia produced in India

NEW DELHI: Sembcorp Green Hydrogen, a wholly-owned subsidiary of Sembcorp, said on Monday that it has entered into a memorandum of understanding (MoU) with Sojitz Corporation and Kyushu Electric Power Company to pursue potential opportunities to pursue potential opportunities for green ammonia production in India for export to Japan.

According to the official press release, under the MoU, the consortium will seek opportunities to pursue opportunities to supply green ammonia to Japan. Subject to the final investment decision and the consortium finalizing supply arrangements, both parties will pursue the construction of green ammonia facilities in India, with Sembcorp as lead developer.

Sojitz is a Japanese conglomerate with energy trading and investment businesses, while Kyushu Electric is a major Japanese energy company providing power primarily in the Kyushu region of Japan.

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Japan is aiming to import three million tonnes of ammonia for fuel by 2030, with demand expected to grow to 30 million tons by 2050. With green ammonia as a critical energy source to decarbonizing Japan's power supply mix, the partnership will support the government's goal to achieve net zero by 2050.

Sojitz and Kyushu Electric will leverage their energy trading and supply capabilities to oversee the transportation of green ammonia to Japan and secure offtakers in Japan, the statement said.

It added that the MoU leverages Sembcorp’s established presence in India, where it has a gross renewables portfolio of 3.7 GW, and is part of Sembcorp's strategic transformation of its portfolio from brown to green.

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