Major Firms Unite for Green Ammonia Project in India
In a significant move towards sustainable energy, six prominent companies, including IHI Corporation and Hokkaido Electric Power Co., have signed a Memorandum of Understanding (MoU) to explore investment opportunities in a green ammonia production project in India. This initiative aims to establish a production facility in Odisha by 2030, with an annual output target of 400,000 tons of green ammonia, which will be transported to Japan for various industrial uses.
Collaboration for Sustainable Energy Solutions
The collaborative project involves IHI Corporation, Hokkaido Electric Power Co., Mitsubishi Gas Chemical Company, Mitsui O.S.K. Lines, Mizuho Bank, and Tokyo Century Corporation, alongside the Indian renewable energy leader, ACME Group. The facility in Odisha is designed to produce green ammonia, a clean energy source that emits no CO2 during combustion. This initiative is part of a broader strategy to develop a robust ammonia value chain, which is essential for decarbonization across multiple sectors, including power generation and shipping.
Ammonia is increasingly recognized as a versatile energy carrier and raw material for fertilizers and chemicals. The demand for green ammonia is expected to rise significantly as industries seek to reduce their carbon footprints. The six companies plan to leverage their expertise in ammonia production, transportation, and utilization to establish a special purpose company (SPC) that will facilitate investment and operational participation in the project.
IHI Corporation aims to lead Japan’s first green ammonia value chain, fostering both domestic and international growth. This initiative aligns with Japan’s commitment to achieving carbon neutrality and ensuring a stable supply of green ammonia.
Strategic Initiatives by Partner Companies
Hokkaido Electric Power Company is actively pursuing carbon neutrality by exploring ammonia utilization at its Tomatoh-Atsuma Thermal Power Station. The company is also studying the establishment of ammonia reception and storage facilities in Hokkaido, which will enhance the local infrastructure for ammonia use.
Mitsubishi Gas Chemical, with its extensive history in the ammonia sector, aims to support the decarbonization of its core raw materials through this project. The company is committed to expanding the green ammonia market as part of its sustainability efforts.
Mitsui O.S.K. Lines is working on developing a green ammonia supply chain, collaborating with IHI Corporation to facilitate the transportation of ammonia from India to Japan. This initiative marks a significant step towards Japan’s first import of green ammonia, utilizing both ocean-going and coastal vessels for distribution.
Mizuho Bank recognizes the critical role of financial institutions in supporting the development of hydrogen and ammonia supply chains. The bank plans to provide 2 trillion yen in financing for capital-intensive manufacturing sectors by 2030, aiming to accelerate the implementation of hydrogen and ammonia technologies.
Tokyo Century, primarily focused on solar energy, is considering participation in the ammonia business as part of its commitment to renewable energy. The company acknowledges the importance of green ammonia in achieving global carbon neutrality and is dedicated to promoting sustainable energy solutions.
This collaborative effort among major companies marks a pivotal step towards a greener future, showcasing the potential of green ammonia as a key player in the transition to sustainable energy.
