The MoU commits the parties to pursue potential opportunities for green ammonia production in India for export to Japan.
Sembcorp Green Hydrogen signed the agreement to leverage the group’s presence as a renewable generator in India, where its portfolio totals more than 3.7GW, including wind projects in operation and under construction in eight states.
Subject to a final investment decision and the consortium finalising supply arrangements, Sembcorp will be lead developer as the parties pursue the construction of green ammonia facilities.
Japan is aiming to import 3 million tonnes of ammonia for fuel by 2030, with demand expected to grow to 30 million tonnes by 2050.
Sojitz is a Japanese conglomerate with energy trading and investment businesses, while Kyushu Electric is a major Japanese energy company.
Sojitz and Kyushu Electric will leverage their energy trading and supply capabilities to oversee the transport of the green ammonia and to secure offtakers in Japan.
Sembcorp currently trades natural gas in Asia. The cash flow generated by gas will be used to fund the growth of Sembcorp’s renewables activities, and the production and consumption of hydrogen and its derivatives.