Offtake term sheets signed for Indian renewable ammonia
By on June 12, 2024
Sojitz, Kyushu Electric and Sembcorp: from India to Japan
Click to learn more. Sembcorp’s renewable generating assets in India. From its under-development renewable ammonia production plant in India, Sembcorp will supply ammonia to Sojitz and Kyushu Electric in Japan. Source: Sembcorp.
Sojitz and Kyushu Electric will offtake the full volume of ammonia production from the first phase of Sembcorp’s under-development production project in India, beginning in the latter half of the 2020s. In this initial phase, 200,000 tons per year of renewable ammonia will be produced at an undisclosed location in India. Singapore-based Sembcorp indicates that it has secured land for the production facility, and is in the process of awarding a FEED contract. Sembcorp also owns a renewables portfolio of 4.7 GW in India.
The three parties indicate that the term sheet will be developed into a legally binding document at a later stage. For their part, Sojitz and Kyushu Electric intend to supply the ammonia to various industrial customers, mainly in the Kyushu region of Japan. Sojitz and Sembcorp have been exploring potential collaborations on decarbonisation infrastructure projects since late 2022.
Avaada and Mysore: from India to India
In more term sheet news, Avaada will supply renewable ammonia to Mysore, a distributor of ammonia to Indian customers across multiple industrial sectors. The long-term supply contract is targeting 100,000 tons per year supply, originating from Avaada’s under-development production project in Goaplpur, Odisha. The 500,000 tons per year facility will be built in the Tata Steel SEZ Industrial Park, and utilise round-the-clock renewable electricity from India’s grid for electrolysis and ammonia synthesis.
The signing of this MoU with Mysore Ammonia is a significant milestone in our journey towards sustainable energy solutions. It underscores our unwavering commitment to advancing the production of green fuels like green ammonia in India, which is crucial for driving the transition towards a low-carbon economy. Leveraging our cutting-edge technology and expertise, we aim to support industries in significantly reducing their carbon footprint and fostering environmental stewardship.
Vineet Mittal, Chairman of Avaada Group in his organisation’s official press release, 11 June 2024