Sembcorp Green Hydrogen Pte. Ltd., a 100% subsidiary of Sembcorp Industries, a leading company in Kyushu Electric Power Co., Ltd. (Kyushu Denryoku) and Asia's energy sector, agreed in principle (hereinafter, this agreement) on June 6, 2024 to supply green ammonia (*) to Japan by three companies manufacturing it in India. In terms of product structure, the operating income of 10-30 billion yuan products was 401/1288/60 million yuan, respectively, with an overall sales volume of 18,000 kiloliters in 2023, a year-on-year increase of +28.10%.
As the trend toward carbon neutrality is accelerating worldwide and the transition to greener energy is becoming more demanded, Sojitz has been discussing cooperation with Sembcorp in a wide range of infrastructure and new energy businesses with decarbonization as the theme since 2022. With its abundant renewable energy resources on vast land, India presents a significant opportunity for the production of green ammonia with high price competitiveness by leveraging Sembcorp's knowledge and resources for local project development and operation. Therefore, Sojitz and Sembcorp have been considering the project to manufacture green ammonia since 2023, aiming to supply it to Japanese customers by also involving Kyushu Electric Power.
Sojitz and Kyushu Electric Power will accept the green ammonia, with an annual production capacity of 200,000 tons from the late 2020s, and plan to supply it to various industrial users in the Kyushu region.
By supplying price-competitive green ammonia, Sojitz aims to promote the introduction of green energy, contribute to Japan's decarbonization, establish a new supply chain to India, and contribute to the stable supply of energy.
(*) Green hydrogen produced by renewable energy and water electrolysis is attracting attention as a carbon-neutral next-generation energy source that does not emit CO, but there are challenges such as transportation methods. Green ammonia is expected to be widely used as a hydrogen carrier to transport green hydrogen and as a zero-emission fuel (fuel ammonia) that does not emit CO when burned for power generation, etc.2Green ammonia is expected to be widely used as a hydrogen carrier to transport green hydrogen and as a zero-emission fuel (fuel ammonia) that does not emit CO when burned for power generation, etc. 2Green ammonia is expected to be widely used as a hydrogen carrier to transport green hydrogen and as a zero-emission fuel (fuel ammonia) that does not emit CO when burned for power generation, etc.
Sojitz Corporation Public Relations Office, 2-1-1, Uchisaiwai-cho, Chiyoda-ku, Tokyo, Tel: 03-6871-3404, hodo@sojitz.com