Sembcorp inks pact to supply Japan with green ammonia produced in India
SEMBCORP Industries is partnering listed Japanese corporates Sojitz Corporation and Kyushu Electric Power to pursue potential opportunities for green ammonia production in India for export to Japan.
On Monday (Dec 18), Sembcorp said its subsidiary Sembcorp Green Hydrogen signed a memorandum of understanding (MOU) with Tokyo-headquartered general trading company Sojiz and Kyushu Electric, an energy supplier based in Fukuoka.
The MOU was presented at the Dec 16 Asia Zero Emission Community Leaders’ Meeting hosted by Japan’s Ministry of Economy, Trade and Industry.
Subject to a final investment decision and the finalising of supply arrangements, the three consortium partners also intend to construct green ammonia facilities in India, with Sembcorp as the lead developer.
Sojitz and Kyushu Electric will oversee the transport of the green ammonia to Japan, and secure off-takers in the country.
Sembcorp said it does not expect the MOU to have a material impact on either the group’s earnings per share, or its net tangible assets, for the current financial year ending Dec 31, 2023.
It views the agreement as part of the group’s strategic transformation of its portfolio “from brown to green”.
“With green ammonia as a critical energy source to decarbonise Japan’s power supply mix, the partnership will support the government’s goal to achieve net zero by 2050. This partnership also reflects the strong commitment by Japan, India and Singapore towards the development of cross-border hydrogen supply chains.”
Shares of Sembcorp were trading S$0.09 or 1.7 per cent lower at S$5.07 as at 1.39pm on Monday, after the news.
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