In a significant step towards decarbonization and clean energy transition, Sojitz Corporation, Kyushu Electric Power Co., and Sembcorp Green Hydrogen Pte. Ltd., a subsidiary of Sembcorp Industries, have signed a term sheet on June 6, 2024, for the supply of green ammonia produced in India to Japanese off-takers. The companies aim to develop the term sheet into a legally binding document in the future.
The collaboration, which began in 2022, focuses on leveraging Sembcorp's expertise in project development and operation in India, a country with abundant renewable energy resources and vast land area, to produce price-competitive green ammonia. Since 2023, Sojitz, Sembcorp, and Kyushu Electric have been jointly planning a project to produce green ammonia for supply to Japanese off-takers.
Under the term sheet agreement, Sojitz and Kyushu Electric will undertake the supply of 200,000 metric tonnes of green ammonia per year from the latter half of the 2020s for the Japanese market, primarily targeting industrial off-takers in the Kyushu region. This initiative aligns with the global trend towards carbon neutrality and the increasing push for clean energy transition.
Green ammonia, produced using green hydrogen derived from renewable energy and water electrolysis equipment, is gaining attention as a carbon-neutral, next-generation energy source and hydrogen carrier. It is expected to be widely adopted for thermal power generation and other applications due to its zero-emission properties when burned.
By supplying cost-competitive green ammonia, Sojitz aims to promote the introduction of green energy and contribute to Japan's decarbonization efforts while diversifying the green energy supply through the establishment of a new supply chain in India, ensuring a stable supply of energy.
This collaboration highlights the growing international cooperation in the pursuit of sustainable energy solutions and the importance of leveraging each country's strengths to achieve global decarbonization goals. As Japan continues to explore innovative technologies and initiatives to reduce its carbon footprint, partnerships like this one between Sojitz, Sembcorp, and Kyushu Electric will play a crucial role in driving the nation's clean energy transition.
Sojitz [Signing at Kick-off Seminar of the Japan-Singapore Co-Creation Platform]
Source:
Sojitz Corporation [Press release]
