Six leading Japanese firms with an eye on building an international green ammonia value chain have signed a Memorandum of Understanding (MOU) to explore investment opportunities in a production project in Odisha, eastern India.
IHI Corporation, Hokkaido Electric Power Co., Mitsubishi Gas Chemical Company, Mitsui OSK Lines (MOL), Mizuho Bank, and Tokyo Century Corporation are exploring the opportunity to develop a facility with renewable energy company ACME Group by 2030.
It would produce around 400,000 tonnes of green ammonia annually which could be exported to Japan to serve its power generation companies and chemical manufacturers.
The NH3 molecule ammonia is a raw material for fertilisers and chemicals and does not emit carbon dioxide during combustion and can provide decarbonisation solutions in various fields, such as fuel for ammonia-ready power plants and ships.
To realise a robust ammonia value chain, there needs to be expertise in ammonia production, in transportation, and in utilisation, as well as international economic cooperation and development support.
The six companies, each lending different expertise in ammonia, will evaluate establishing a special purpose company for ammonia production and investment participation.
IHI Corporation is publicly dedicated to pioneering Japan’s first green ammonia value chain while Hokkaido Electric Power Company is advancing its efforts towards carbon neutrality by exploring the use of ammonia at the Tomatoh-Atsuma Thermal Power Station Unit 4, a coal-fired power plant. It is also 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 has a long-standing history in the ammonia business. Through this initiative, Mitsubishi Gas Chemical seeks to promote the decarbonisation of ammonia, one of its core raw materials, and contribute to the transition.
MOL, for its part, is working toward Japan’s first import of green ammonia, using 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.
Mizuho Bank is studying funding for capital-intensive manufacturing sectors and aims to execute financing of Y2trn for hydrogen and ammonia by 2030.
Tokyo Century, primarily focusing on solar power within its renewable energy initiatives, is considering participating in the ammonia business.
Electric power company Adani Energy Solutions, headquartered in Ahmedabad, recently won a Rs2,800 Cr ($324m) transmission project to power a green hydrogen and green ammonia manufacturing facility in its home state of Gujarat.
India signed its first agreement for the export of green ammonia to Japan last summer.
