Sembcorp inks in-principle agreement to supply Japan with green ammonia produced in India

SEMBCORP Green Hydrogen, a wholly owned subsidiary of Sembcorp Industries, has signed a heads of terms with listed Japanese corporates Sojitz Corporation and Kyushu Electric Power for green ammonia offtake.

This comes after the parties signed a memorandum of understanding in December 2023 to explore supplying Japan with green ammonia produced in India.

On Thursday (Jun 6), Sembcorp said it had secured land in India for the development of the facilities. It also noted that it will use renewable energy to produce an initial 200,000 tonnes per annum of green ammonia in India.

Sembcorp said it does not expect the heads of terms to have a material impact on either the group’s earnings per share or its net tangible assets per share for the financial year ending Dec 31, 2024.

The agreement was presented at the Indo-Pacific Economic Framework Clean Economy Investor Forum.

Present at the event were the Japanese Minister of Economy, Trade and Industry Ken Saito; Singapore’s Second Minister for Trade and Industry Dr Tan See Leng; and Commerce Secretary Shri Sunil Barthwal, of India’s Ministry of Commerce and Industry. Shares of Sembcorp were trading flat at S$5.09 before the midday trading break on Thursday.