Six leading Japanese companies—IHI Corporation, Hokkaido Electric Power Co., Mitsubishi Gas Chemical, Mitsui O.S.K. Lines (MOL), Mizuho Bank, and Tokyo Century Corporation—have signed a Memorandum of Understanding (MoU) to explore investment in a green ammonia production project in India. This initiative, led by ACME Group, a major Indian renewable energy company, aims to establish a green ammonia production facility in Odisha by 2030, with an expected annual output of 400,000 tons. The produced ammonia will be transported to Japan for use in power generation, chemical manufacturing, and other industries, supporting the country's decarbonization efforts.

Ammonia is increasingly recognized as a next-generation clean energy source due to its ability to generate power without emitting CO2. In addition to its traditional role in fertilizers and chemicals, ammonia has the potential to serve as a low-carbon fuel for power plants and maritime applications, driving large-scale demand in the future. Establishing a stable and efficient ammonia supply chain requires expertise in production, transportation, and utilization, as well as international economic cooperation. To facilitate this, the six Japanese companies will jointly explore the formation of a Special Purpose Company (SPC) to oversee production and investment, leveraging their expertise in these areas.

Each participating company brings a unique contribution to the project. IHI Corporation is committed to developing Japan’s first green ammonia value chain, ensuring a stable and safe supply to accelerate carbon neutrality efforts. Hokkaido Electric Power Co. is considering ammonia as a co-firing fuel at its Tomakomai Touma Power Plant Unit 4, a coal-fired facility, while also working to establish an ammonia receiving, storage, and supply base in the Tomakomai area to expand its adoption. Mitsubishi Gas Chemical, with its longstanding experience in ammonia production, is exploring the decarbonization of ammonia as a key raw material in its operations, supporting broader sustainability goals. Mitsui O.S.K. Lines (MOL), in partnership with IHI, is positioning itself as Japan’s first importer of green ammonia, actively developing a supply chain that will transport ammonia from India to Japan via oceangoing vessels, followed by domestic distribution through primary and secondary terminals.

Recognizing the growing importance of financial support in developing sustainable energy infrastructure, Mizuho Bank has committed to providing 2 trillion yen in financing by 2030 for hydrogen, ammonia, and other clean energy projects. This investment will accelerate the establishment of supply chains and the adoption of carbon-neutral solutions. Tokyo Century, traditionally focused on solar energy projects, views green ammonia as a crucial element in global decarbonization efforts and is considering its participation to promote sustainable energy solutions.

By leveraging their collective expertise, these companies aim to establish a secure and sustainable green ammonia supply chain, reinforcing Japan’s commitment to carbon neutrality and the transition to cleaner energy sources.