In March 2025, a consortium of 6 leading Japanese companies including, IHI Corporation (formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd.); Hokkaido Electric Power Co., Inc. (HEPCO); Mitsubishi Gas Company, Inc. (MGC), shipping major Mitsui O.S.K. Lines Limited, Inc. (MOL); Mizuho Bank, Ltd. (MHBK), and Tokyo Century Corporation has signed a Memorandum of Understanding (MoU) to explore investment opportunities in a green ammonia production project currently under development in India.
- As per the MoU, a new green ammonia production facility will be established in Odisha, by 2030 in partnership with Gurugram(Haryana) based ACME Cleantech Solutions Private Limited(part of ACME Group), a leading Renewable Energy (RE) company.
- The facility is expected to produce nearly 4 lakh tons of green ammonia annually.
Note: Ammonia(NH3), a raw material for fertilizers and chemicals, is a next-generation clean energy source that does not emit Carbon dioxide(CO2) during combustion. It has the potential to provide decarbonization solutions in various fields.
Key Points:
i.The green ammonia produced in the proposed facility will be transported to Japan, where local power generation companies will use it as a clean energy source.
ii.The consortium will contribute their technical and financial expertise, and will evaluate the feasibility of setting up a Special Purpose Company (SPC) for ammonia production and investment.
Role of key entities involved in the Project:
i.IHI Corporation is dedicated to pioneering Japan’s 1st dedicated green ammonia value chain. It aims to build and expand this value chain both at domestic and international levels, ensuring a stable supply of green ammonia and help in achieving carbon neutral society.
ii.HEPCO is making advancements in its carbon neutrality efforts by exploring ammonia use at the Tomato-Atsuma Thermal Power Station Unit 4 and developing ammonia reception, storage and supply facilities in Hokkaido (Japan).
iii.MOL has signed an MoU with IHI Corporation to develop a green ammonia supply chain and is working toward Japan’s 1st import of green ammonia, using ocean-going vessels to transport ammonia from IHI’ production base in India to Japan’s primary terminals.
iv.MHBK has pledged to provide financial support of 2 trillion Japanese Yen (JPY) for hydrogen, ammonia and related technologies by 2030. It aimed to boost supply chain development and facilitate the implementation of sustainable energy solutions.
- Tokyo Century Corporation, mainly focused on solar energy, is now exploring participation in the ammonia business as part of its commitment to carbon neutrality.
About Japan:
Prime Minister (PM)- Shigeru Ishiba
Capital- Tokyo
Currency- Japanese Yen (JPY)
