In Short : Sembcorp has commenced the construction of a green ammonia plant in Tuticorin, Tamil Nadu. This facility will produce ammonia using renewable energy sources, positioning it as a key player in the green hydrogen and ammonia value chain. The project aligns with India’s push towards cleaner energy solutions and is expected to significantly contribute to the country’s sustainable energy goals.
In Detail : Chennai, Singapore’s Sembcorp Industries Ltd will build a plant to produce green ammonia at Tuticorin in Tamil Nadu for export of the zero-emission fuel to Japan, the company said Tuesday.
Tamil Nadu chief minister M K Stalin laid the foundation stone of the green ammonia plant at Tuticorin, it said in a statement.
Ammonia is a pungent gas that is widely used to make agricultural fertilisers. Green ammonia production is where the process of making ammonia is 100 per cent renewable and carbon-free.
Ammonia is made by combining nitrogen and hydrogen which are highly abundant elements. Earth’s atmosphere is mostly nitrogen, and water is full of hydrogen. To make green ammonia, electricity generated from renewable sources such as sunlight and wind is used to split hydrogen from water in an electrolyser and then feed it into a reactor along with nitrogen.
Green ammonia, which when burnt produces only water and nitrogen, is currently used to make fertilizers but can also used to generate electricity and power ships.
The foundation laying of Sembcorp’s plant follows the signing of the first-ever agreement for the export of green ammonia from India to Japan on Tuesday.
The Heads of Terms (HoT) agreement was signed between Sembcorp Industries, and Japanese firms Sojitz Corporation, Kyushu Electric Power Co and NYK Line.
The offtake agreement for the Singapore-facilitated cross-border export of green ammonia from India to Japan represents the first such collaboration between the three nations.
While Sembcorp will produce green ammonia in India, Kyushu Electric Power has committed to integrating this green ammonia into its energy mix, partially replacing coal consumption at its thermal power plants in Japan.
Sojitz Corporation will act as the business intermediary, facilitating the connection between the ammonia producer and the off-taker. NYK Line will oversee the maritime transportation of green ammonia from India to Japan.
“Sembcorp will operate and produce green ammonia from the plant, spread over 160 acres in the key port area of Tuticorin. The plant will initially produce 200,000 metric tonnes per annum of green ammonia for exporting to Japan. The front-end engineering and design work for the plant has commenced,” the statement said without giving financial details.
In his address at the foundation laying, Stalin said, “Tamil Nadu has been a frontrunner in renewable energy initiatives, playing an important part in advancing India’s energy transition targets. I am confident that this project in Tuticorin will be a stepping stone to establish Tamil Nadu as a global hub for green hydrogen production. This collaborative project reflects the commitment of all the partner nations – India, Singapore, and Japan – to work towards a sustainable future for the region.” The laying of the foundation stone builds on an earlier Heads of Terms signing between Sembcorp Green Hydrogen Pte Ltd, Kyushu Electric Power Co, Sojitz Corporation, and Nippon Yusen Kabushiki Kaisha in relation to a cross-border green ammonia offtake from India to Japan, it said.
Speaking on the occasion, Vipul Tuli, Chairman – South Asia, and CEO – Hydrogen Business, Sembcorp Industries, said, “With its renewable resources and investor-friendly policies, Tamil Nadu is a frontrunner state in realising India’s green hydrogen ambitions. Sembcorp is honoured to be part of this historic moment, as the efforts of India, Japan, and Singapore come together in Tamil Nadu to make a mark on the global green hydrogen industry.” “This marks a significant milestone in the collaboration between Singapore and India to advance the development of green energies. It highlights the role that Singapore companies with deep expertise can play in partnering with India along its economic development journey. With Japan as the end market, this project also showcases the bridging role that Singapore companies can offer in 3rd country collaboration,” said Tan Soon Kim, Deputy Managing Director of Enterprise Singapore.
Earlier this year, Sembcorp had signed a Memorandum of Understanding during the Global Investment Meet with the Government of Tamil Nadu to set up a green ammonia manufacturing facility within the state. The proposed project is expected to create local employment opportunities in the Tuticorin region and promote the overall development of this key port area, the statement said.
“As a leading energy player in Asia, Sembcorp is collaborating with various partners to explore production and export of green ammonia as a pathway to advance the region’s energy transition. With one of the highest wind asset productivities which holds the key to large-scale low-cost green hydrogen production, Sembcorp will leverage its strong capabilities demonstrated through its existing renewables portfolio of 4.7GW in India, to produce competitively priced green ammonia in India,” it added.
