This comes after the company, together with Kyushu Electric Power and Sojitz, signed a heads of terms in June for green ammonia offtake
SEMBCORP Green Hydrogen, a wholly owned subsidiary of Sembcorp Industries, and two other listed Japanese corporations have signed an in-principle agreement with Nippon Yusen Kabushiki Kaisha for the export of green ammonia from India to Japan.
This comes after Sembcorp and the two listed companies – Kyushu Electric Power and Sojitz – signed a heads of terms in June for green ammonia offtake.
The trio had signed a memorandum of understanding in December 2023 to explore supplying Japan with green ammonia produced in India.
On Wednesday (Aug 21), Sembcorp said Nippon Yusen Kabushiki Kaisha will oversee the maritime transportation of green ammonia and develop a strong supply chain to export the gas from India to Japan, particularly in the Kyushu region.
Meanwhile, Sembcorp said it will produce competitively priced green ammonia in India. The group in June noted that it will use renewable energy to produce an initial 200,000 tonnes per annum of green ammonia in India.
The energy company noted that front-end engineering and design work for the green ammonia plant in Tuticorin, India has started. This came after the group previously said it had secured land in India for the development of ammonia facilities.
Sembcorp said it does not expect the agreement to have a material impact on its earnings per share and net tangible assets per share for the fiscal year ending Dec 31.
Shares of Sembcorp ended 0.9 per cent or S$0.04 higher at S$4.76 on Tuesday.
