MHI advances green ammonia strategy

The study examined the economic feasibility of producing green ammonia in India using the country’s highly competitive renewable energy resources before exporting it to Singapore for electricity generation and marine bunkering applications.

Conducted under METI’s FY2023 Global South Future-Oriented Co-Creation supplementary programme, the research analysed every stage of the supply chain, from production and storage to transport and end use.

The analysis found that substantial cost reductions could be achieved by coordinating activities across the value chain rather than optimising individual components in isolation. The study also highlighted opportunities to lower costs by adjusting operations to account for seasonal variations in renewable energy generation in India.

The research drew on production data and local market information provided by several project partners, including Indian green ammonia developer Hygenco. The company is currently developing a major green ammonia facility in Odisha on India’s east coast with an annual production capacity of 1.1 million tonnes.

Following completion of the analysis, MHI engaged with industry and government representatives in both India and Singapore to discuss the policy and commercial measures needed to establish a viable cross-border green ammonia market.

Among the recommendations were initiatives to stimulate demand for green ammonia, reduce capital investment costs, support technology development and recognise the environmental value of low-carbon fuels through green premium mechanisms.

MHI said the findings reinforce the importance of coordinated planning between governments and industry to establish competitive international supply chains for decarbonised fuels.