Japanese Consortium Signs MoU to Establish Green Ammonia Facility in Odisha by 2030.

A consortium of leading Japanese companies has signed a Memorandum of Understanding (MoU) to explore investment opportunities in a green ammonia production facility in Odisha, India. The consortium includes IHI Corporation, Hokkaido Electric Power Co., Mitsubishi Gas Chemical Company, Mitsui O.S.K. Lines, Mizuho Bank, and Tokyo Century Corporation. The project, developed in collaboration with India’s ACME Group, aims to produce approximately 400,000 tonnes of green ammonia annually by 2030.

According to a statement by Mitsui O.S.K. Lines, the green ammonia produced at the facility will be safely transported to Japan, supporting domestic users such as power generation companies and chemical manufacturers. Ammonia, a key raw material for fertilizers and chemicals, is emerging as a next-generation clean energy source due to its carbon-free combustion, making it a promising solution for decarbonization in industries like power generation and shipping.

To establish a robust ammonia value chain, expertise in production, transportation, and utilization is essential. The consortium will assess the feasibility of creating a special purpose company (SPC) for ammonia production and investment participation.

IHI Corporation is committed to pioneering Japan’s first green ammonia value chain, leveraging the strong cooperation among the six companies to ensure a stable supply of green ammonia both domestically and internationally. Hokkaido Electric Power Co. is advancing its carbon neutrality efforts by exploring ammonia use at the Tomatoh-Atsuma Thermal Power Station Unit 4 and developing ammonia reception, storage, and supply facilities in Hokkaido.

Mitsubishi Gas Chemical, with extensive experience in the ammonia business, aims to drive the decarbonization of ammonia production, a core raw material in its operations. Mitsui O.S.K. Lines has partnered with IHI Corporation to develop a green ammonia supply chain and is working towards Japan’s first import of green ammonia, using ocean-going vessels to transport the fuel from India to Japan’s primary terminals.

Mizuho Bank has committed to financing 2 trillion yen for hydrogen, ammonia, and related technologies by 2030, aiming to accelerate supply chain development and facilitate the implementation of sustainable energy solutions. Tokyo Century, traditionally focused on solar energy, is now exploring participation in the ammonia business as part of its commitment to carbon neutrality.

By combining their expertise, the consortium aims to establish a reliable and efficient green ammonia supply chain, contributing to the global transition towards a decarbonized society.

HBL