JERA and ReNew team up on ammonia production in India

Japan’s energy major JERA has concluded an agreement with ReNew E-Fuels, a subsidiary of India-based renewable energy company ReNew Energy Global, to jointly develop a green ammonia production project in India.

Specifically, under the agreement, the two parties will jointly evaluate the development of a green ammonia production project in Paradip, the state of Odisha, with the project utilizing approximately 500 MW of high-capacity utilization factor (CUF) renewable energy to produce green hydrogen, a key feedstock for green ammonia, the companies revealed.

The project is likely to have a production capacity of approximately 100,000 tons of green ammonia annually by 2030, the parties noted, adding that JERA will have the right to offtake this green ammonia for Japan. There will also be a joint study to evaluate the commercial viability of the project.

According to the companies, this project will leverage ReNew’s capabilities in renewable energy development and solutions and JERA’s capabilities in building full value chains. To note, the two parties have been collaborating since 2017.

Commenting on ReNew and the agreement, JERA said: “Because green ammonia is produced using renewable energy, we believe they will make a substantial contribution to achieving our ‘JERA Zero CO2 Emissions 2050′ objective. Our cooperation with ReNew signifies both companies’ commitment to bolstering the strong relationship between Japan and India, while advancing their respective goals of achieving Net Zero and promoting green hydrogen, along with achieving the global transition to a decarbonized society.”

In this project, JERA announced the company will accelerate the development of renewable energy, which is essential for the production of green hydrogen and ammonia, through JERA Nex, its newly formed renewable energy business company.

JERA also emphasized the company will continue to work with “leading” companies in Japan and overseas to establish and expand hydrogen and ammonia supply chains, thereby contributing to global decarbonization and solving energy issues, particularly in Asia.

Yukio Kani, Global CEO and Chair of JERA, stated: “Since 2017, JERA has maintained a strong partnership with ReNew, and we are pleased to expand this collaboration to the next level: the first green hydrogen and ammonia development project for JERA. This joint development agreement represents a significant milestone and an exciting advancement moving us one step closer to realizing decarbonized society, with a focus on the sustainability, affordability, and stability of future energy.”

Sumant Sinha, Founder, Chairman and CEO of ReNew, noted: “This collaboration marks an exciting time for both ReNew and JERA and demonstrates our commitment in accelerating the clean energy transition. Green ammonia holds immense potential in reducing carbon emissions and the project, once ready, will contribute to a cleaner future and support India’s National Green Hydrogen Mission.”

India’s National Green Hydrogen Mission aims to make the country a global hub for the production, utilization and export of green hydrogen and its derivatives, as well as help it become energy-independent while also decarbonizing major sectors of its economy.

To remind, this week, JERA also executed a joint development agreement with U.S. ammonia producer CF Industries Holdings to jointly explore the development of a low-carbon ammonia production project in the U.S.

Under the agreement, JERA revealed the company is contemplating a 48% ownership stake in the project as well as an agreement to procure more than 500,000 tonnes of ammonia annually to meet the demand for low-carbon fuels in Japan.

Among other different activities, in 2024, JERA signed a joint study agreement (JSA) with Malaysia’s Petroliam Nasional Berhad (Petronas) to evaluate the feasibility of separating and capturing CO2 emitted by JERA in Japan and then transporting it to Malaysia for storage. Furthermore, the company concluded a project framework agreement with U.S. energy major ExxonMobil to jointly explore the development of low-carbon hydrogen and ammonia production in the U.S.

As for ReNew’s recent activities, it is worth mentioning that, in late 2023, the company signed a memorandum of understanding (MoU) with the Asian Development Bank (ADB) to collaborate on climate change mitigation and adaptation projects, including green hydrogen.

Specifically, the MoU identified potential investments in renewable energy projects, manufacturing, carbon offset projects and green hydrogen, with the aim of jointly supporting sustainable energy transition. As per ReNew, the MoU covers projects with an investment value of more than $5.3 billion between 2023 and 2028.