Singapore-based Sembcorp Industries on Monday said it has partnered with two Japanese firms to produce green ammonia in India for supplies to Japan, as it looks to strengthen its position as a major green energy supplier.

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Sembcorp Green Hydrogen Pte Ltd, a unit of Sembcorp Industries, signed a memorandum of understanding (MoU) with Japanese conglomerate Sojitz Corp and energy major Kyushu Electric Power "to pursue potential opportunities for green ammonia production in India for export to Japan," the firm said in a statement.

"With green ammonia as a critical energy source to decarbonise Japan's power supply mix, the partnership will support the (Japanese) government's goal to achieve net-zero by 2050," it said.

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.

Japan is aiming to import 3 million tonne of ammonia for fuel by 2030, with demand expected to grow to 30 million tonne by 2050.

"Under the MoU, the consortium will seek to pursue opportunities to supply green ammonia to Japan. Subject to a final investment decision and the consortium finalising supply arrangements, the parties will pursue the construction of green ammonia facilities in India, with Sembcorp as lead developer," the statement said.

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

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.

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

"This partnership also reflects the strong commitment by Japan, India and Singapore towards the development of cross-border hydrogen supply chains," the statement said.

The MoU was presented at the Asia Zero Emission Community Leaders' Meeting held on December 16, 2023, hosted by Japan's Ministry of Economy, Trade and Industry.

Ammonia has been widely used as a fertilizer. Using renewable energy and a new method for making ammonia, the final product 'green ammonia' is being touted as a significant clean fuel source for generating electricity and powering ships.

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