Sembcorp, Sojitz and Kyushu Electric nearing ammonia offtake deal

Sembcorp Green Hydrogen, a wholly-owned subsidiary of Singapore-based Sembcorp Industries, has signed a heads of terms (HoT) with Japan-based companies Sojitz Corporation and Kyushu Electric Power, paving the way to finalize a definitive green ammonia offtake agreement.

The HoT builds on the memorandum of understanding (MoU) signed and announced on December 18, 2023, to explore supplying Japan with green ammonia produced in India.

As the lead developer and operator of that project in India, Sembcorp will utilize renewable energy to produce an initial 200,000 metric tonnes per annum of green ammonia.

Sembcorp said that the land in India has been secured for the development of the facilities, following the completion of feasibility and preliminary front-end engineering design (FEED) studies.

According to Sembcorp, this collaboration aims to accelerate the development of a low-carbon supply chain and advance the region’s transition to a clean economy.

To remind, in late 2022, Sembcorp Industries formed strategic partnerships with the Japanese government and various corporations to progress hydrogen and other decarbonization initiatives.

The partnerships formed included an MoU with Sojitz Corporation to partner on new renewable energy projects, including green hydrogen production, battery energy storage systems and net-zero industrial parks, in Asia Pacific.