Six Japanese companies have signed a non-binding Memorandum of Understanding to explore investment in a green ammonia production project in eastern India, potentially creating Japan’s first green ammonia import route.
India-based renewable energy company ACME Group is leading a project to develop a green ammonia production facility in Odisha by 2030, with a targeted annual output of 400,000 tonnes. The ammonia is now earmarked to be shipped to Japan for use in power plants and chemical production.
The six companies are IHI Corporation, Hokkaido Electric Power Co, Mitsubishi Gas Chemical Company, Mitsui OSK Lines, Mizuho Bank, and Tokyo Century Corporation. The legal document covers potential collaboration on investment, transport and supply chain development, including the possible establishment of a special purpose company.
Japan consumed around 1.2 million tonnes of ammonia in 2022, with demand expected to grow as the country shifts to cleaner energy sources. Green ammonia, produced using renewable hydrogen and emitting no CO2 during combustion, is expected to play a key role in industrial decarbonisation.
Ammonia is increasingly viewed as a low-carbon fuel for industrial and energy applications, with Japan identifying it as a strategic element in its decarbonisation roadmap. By partnering with a major renewable energy developer in India, the consortium aims to secure access to low-emission ammonia while developing a long-distance supply chain spanning production, shipping, storage and final consumption.
IHI Corporation is developing ammonia combustion technology and aims to lead the creation of a green ammonia value chain. Hokkaido Electric is exploring ammonia use at its coal-fired thermal plant and associated import infrastructure.
Mitsubishi Gas Chemical is looking to decarbonise one of its core raw materials. Mitsui OSK Lines would be responsible for maritime transport, Mizuho Bank is focused on clean energy financing, and Tokyo Century is exploring green ammonia as part of its renewable energy portfolio.
The companies will conduct feasibility studies and due diligence before a decision.
