IHI and ACME to supply green ammonia from India to Japan

IHI Corporation, a Japanese heavy-industry manufacturer, and ACME Group, a leading renewable energy company in India, have signed a term sheet to supply green ammonia from Odisha, India to Japan. The term sheet was signed on January 23, 2024, in the presence of Union Minister for Power and New & Renewable Energy Shri RK Singh, New & Renewable Energy Secretary Shri Bhupinder Singh Bhalla, and Ambassador of Japan to India Hiroshi Suzuki.

Green ammonia is ammonia produced from renewable energy sources, such as solar, wind, or hydro power, without using fossil fuels. Ammonia is a chemical compound of nitrogen and hydrogen that can be used as a fertilizer, a fuel, or an energy carrier. Green ammonia can help reduce greenhouse gas emissions and dependence on fossil fuels, as well as create new markets and opportunities for clean energy.

According to the term sheet, IHI considers off-taking up to 400,000 tons of green ammonia from 2028, which will be supplied to various industrial customers located mainly in Japan. Both companies are in discussion to partner across the value chain, starting from production to logistics, supply to customers and creation of the green ammonia market for use in a range of applications in power generation and industrial uses in Japan.

This strategic alignment represents the dedication of both companies to build upon the existing strong relationship between the two countries and contribute to both Japan’s Net Zero commitment as well as India’s National Green Hydrogen mission, with a shared vision of sustainability and innovation.

The term sheet is a result of a memorandum of understanding (MoU) that IHI and ACME signed in February 2023, to jointly study and evaluate potential projects with respect to collaboration opportunities across the green hydrogen and ammonia value chain, including production, handling, transportation, distribution, and power generation. The MoU also allows IHI to participate as an investor or take offtake in one or more project of ACME in Oman, India, USA or Egypt.

IHI has been actively involved in the development of green ammonia technologies and projects, as part of its efforts to achieve carbon neutrality by 2050. IHI has also been conducting feasibility studies on green ammonia production and utilization businesses in India, in collaboration with the New Energy and Industrial Technology Development Organization (NEDO) of Japan.

ACME has been a pioneer in the renewable energy sector in India, with a portfolio of over 5 GW of solar power projects across 12 states. ACME has also been exploring opportunities in green hydrogen and ammonia, as well as sustainable green protein development.

Feature Green ammonia Conventional ammonia Fossil fuels
Production method Electrolysis of water using renewable energy Steam reforming of natural gas or coal gasification Extraction and refining of oil, gas, or coal
Carbon intensity Zero High High
Energy density High High High
Storage and transport Similar to liquefied natural gas (LNG) Similar to LNG Varies depending on the type of fuel
Applications Fertilizer, fuel, energy carrier Fertilizer, fuel, feedstock Fuel, feedstock
Environmental impact No CO2 emissions, minimal water consumption, potential for nitrogen fixation High CO2 emissions, high water consumption, risk of ammonia leakage High CO2 emissions, air pollution, water contamination, land degradation

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