Japanese consortium considering investment in green ammonia project in India

A group of six Japanese companies has signed a memorandum of understanding (MoU) to investigate investment options in a green ammonia production currently under development in India and work towards Japan’s first import of green ammonia.

Namely, IHI Corporation, Hokkaido Electric Power, Mitsubishi Gas Chemical Company, Mitsui O.S.K. Lines (MOL), Mizuho Bank, and Tokyo Century Corporation agreed to explore investment opportunities in a new green ammonia production facility to be established in Odisha, eastern India, by 2030 in collaboration with Indian renewable energy company ACME.

The facility has a planned annual production capacity of approximately 400,000 tons of green ammonia which would be transported to Japan and utilized by domestic users, including power generation and chemical companies.

In order to create a robust ammonia value chain with production, transportation, and utilization components, along with international economic cooperation and development support, the six Japanese companies will evaluate the establishment of a special purpose company (SPC) for ammonia production and investment participation.

As understood, IHI Corporation intends to leverage the cooperative framework among the six companies to build and expand this value chain both domestically and internationally. A year ago, the company signed an offtake term sheet with ACME for the supply of green ammonia from India to Japan.

IHI Corporation and MOL signed an MoU to utilize ocean-going vessels to transport the ammonia from IHI’s production base in India to Japan’s primary terminals, followed by coastal vessels for delivery to secondary terminals.

Meanwhile, Hokkaido Electric Power Company is exploring the use of ammonia at the Tomatoh-Atsuma Thermal Power Station Unit 4, a coal-fired power plant. Additionally, the company is conducting studies on establishing facilities for the reception, storage, and supply of ammonia in the Tomakomai area of Hokkaido, aiming to promote and expand the use of ammonia.

Mitsubishi Gas Chemical seeks to promote the decarbonization of ammonia, one of its core raw materials, and contribute to the transition to a decarbonized society.

Mizuho Bank aims to execute financing of 2 trillion yen (around $13.35 billion) for ammonia and hydrogen supply chains by 2030. Through this initiative, Mizuho Bank intends to contribute to accelerating supply chain development and the societal implementation of hydrogen, ammonia, and related technologies.

Tokyo Century, which has primarily focused on solar power within its renewable energy initiatives, is considering participation in the ammonia business, recognizing the utilization of green ammonia as a crucial element in addressing the global challenge of achieving carbon neutrality.