NYK Line has reached an agreement in collaboration with Kyushu Electric Power Company, Sojitz Corporation, and Sembcorp for the marine transport of green ammonia to Japan.
The basic agreement was reached on 20 August, and aims to produce highly competitive green ammonia in India, a country with abundant renewable energy resources.
The agreement is based on the premise that approximately 200,000 metric tons of ammonia will be produced annually through the project and transported to Kyushu region.
In June this year, a basic agreement was reached between Kyushu Electric, Sojitz, and Sembcorp to supply ammonia produced in the project to industrial customers in Japan, primarily located in the Kushu region in the country’s south.
NYK says the project will utilize the shipping line’s experience and knowledge in the marine transport of ammonia.
“Through the marine transport, NYK will continue to contribute to establish supply chains of next generation energy such as ammonia, in the Kyushu region and elsewhere in Japan,” the shipping line said in their announcement.
The news came one day prior to Sembcorp’s own announcement that the chief minister of the Indian state of Tamil Nadu, M.K. Stalin, had laid the foundation stone for a state-of-the-art green ammonia plant in Tuticorin, a port city in the southern Indian state.
Sembcorp will operate and produce green ammonia from the plant, spread over 160 acres in the port area of Tuticorin.
Sembcorp’s announcement mentioned the plant will initially produce 200,000 metric tonnes of green ammonia for export to Japan annually, matching details given in the announcement from NYK.
Vipul Tuli, chairman of Sembcorp – South Asia and CEO of Hydrogen Business at Sembcorp Industries said that with its renewable resources and investor-friendly policies, Tamil Nadu is a frontrunner state in realising India’s green hydrogen ambitions.
“Sembcorp is honoured to be part of this historic moment, as the efforts of India, Japan, and Singapore come together in Tamil Nadu to make a mark on the global green hydrogen industry,” Mr Tuli said.
Sembcorp is a Singaporean state-owned energy and urban development company that aims to deliver sustainable solutions to support energy transition and urban development by leveraging its sector expertise.
Earlier this year, Sembcorp says it signed a memorandum of understanding during the Global Investment Meet with the Government of Tamil Nadu to set up a green ammonia manufacturing facility within the state.
Sembcorp says the off-take agreement for the Singapore-facilitated export of green ammonia from India to Japan represents the first such collaboration between the three nations.
