The Hydrogen Stream: Sembcorp signs term sheet to supply green ammonia from India to Japan

Sembcorp Green Hydrogen, an arm of Sembcorp Industries, has signed a term sheet with Sojitz Corp. and Kyushu Electric for the supply of green ammonia produced in India to Japanese off-takers. The term sheet paves the way to finalise a definitive green ammonia offtake agreement. It builds on the memorandum of understanding (MOU) signed and announced earlier in December last year, to explore the production of green ammonia in India for export to Japan.

As the lead developer and operator of the project, Sembcorp will utilise renewable energy to produce an initial 200,000 metric tonnes per annum of green ammonia in India.

Sojitz and Kyushu Electric will undertake the 200,000 metric tonnes of green ammonia per year from the latter half of the 2020s for the Japanese market and will supply it to various industrial off-takers mainly in the Kyushu region as part of this term sheet agreement.

By supplying cost-competitive green ammonia, Sojitz will promote the introduction of green energy and contribute to Japan’s decarbonization efforts. At the same time, Sojitz strives to provide a stable supply of energy through diversification of the green energy supply with the establishment of a new supply chain in India.

Solar Energy Corp. of India (SECI) has launched a tender to produce and supply green ammonia to leading fertilizer manufacturers in India. The selection of developers for the total available green ammonia capacity of 539,000 metric tonnes per annum (mtpa) will be carried out through e-bidding followed by e-reverse auction process.

Bidders setting up production facilities for supply of green ammonia will be eligible for the incentive assistance under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme if they meet the qualification requirement.

SECI will be the intermediary procurer for the green ammonia supplied by the green ammonia producers and sale of such green ammonia to the procurers (fertilizer manufacturers) entirely on back-to-back basis. It will sign a green ammonia purchase agreement with the green ammonia producers for a period of 10 years.

Rystad Energy said that China’s hydrogen electrolyzer capacity could hit 2.5 GW by the end of December, reaching its 2025 green hydrogen production target one year in advance. “This capacity is expected to produce 220,000 tons per annum (tpa) of green hydrogen, 6-kilotons per annum (ktpa) more than the rest of the world combined,” said the Norway-based energy research company. China said it aims to achieve a green hydrogen production target of 200,000 tpa by the end of 2025 under its national plan, which was published in 2022.

The European Union‘s Clean Hydrogen Partnership has signed a cooperation agreement with Japan’s New Energy and Industrial Technology Development Organization (NEDO). “The agreement signed today will strengthen the knowledge and capacity of scientific and industrial sectors along the value chain and will put our research centers and our industries on a fast track,” said Clean Hydrogen Partnership Executive Director Valerie Bouillon Delporte. Areas for collaboration include the exchange of data and knowledge, periodical meetings on areas of mutual interest such as electrolysis, and standardization.

Glocal Green and Norwegian Hydrogen said they have signed a “concrete cooperation agreement” for the development of hydrogen production in connection with Glocal Green’s planned bio-methanol plant in Gudbrandsdalen, Norway. Bio-methanol will be produced from biological residual materials and by-products from forestry, agriculture, and the marine sector. “By adding hydrogen in the production process, all the green carbon is utilized, resulting in a volumetric doubling of methanol production,” said Norwegian Hydrogen, adding that a jointly owned company will deal with hydrogen production. “The goal here is an annual production of 150,000 tons of bio-e-methanol, which will also involve local production of 15,000 tons of green hydrogen from electrolysis,” said the companies.

The Oxford Institute for Energy Studies said that it is highly unlikely that the European Union and the United Kingdom will reach their 2030 hydrogen targets. It said significant progress was made in completing the regulatory framework on the low-carbon hydrogen market in the European Union and the United Kingdom in 2023.

Eletrobras and Prumo Logística, the holding company that develops the Brazilian port of Açu, have agreed to evaluate the production of renewable hydrogen and its derivatives. “The agreement will assess the technical, environmental, and economic-financial viability of setting up the plant and, also, the use of resources for research and development,” said Eletrobras.

Petrobras and Sinosure, a Chinese export credit agency, have agreed to evaluate investment and cooperation opportunities in low-carbon and green finance initiatives. The aim is to facilitate trade and financial exchanges with Chinese enterprises, said the Brazilian company.

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