Under the HOT, NYK will oversee the maritime transportation of the green ammonia, to establish a robust supply chain from production in India to supply in Japan, particularly in the Kyushu region.
Sembcorp, as the lead developer of the proposed project, will produce “competitively-priced” green ammonia in India. Sembcorp’s existing gross renewables portfolio in India has a capacity of 4.7 gigawatts.
The front-end engineering and design work for the green ammonia plant in Tuticorin, Tamil Nadu, has commenced.
This follows a previous HOT signed in June, which set the stage for the parties to finalise a definitive green ammonia offtake agreement. The parties had signed a memorandum of understanding (MOU) in December 2023 to explore supplying Japan with green ammonia produced in India.
See also: Sembcorp Green Hydrogen nears green ammonia offtake agreement with Japanese firms
This signing is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending Dec 31.
Shares in Sembcorp closed 4 cents higher, or 0.85% up, at $4.76 on Aug 20.
