India and Japan on 20 August signed their first project offtake agreement for the export of green ammonia to the latter (Japan).
- The Heads of Terms (HoT) agreement was signed for a cross-border green ammonia supply partnership from India to Japan.
- This is the first-ever agreement for the supply of Green Ammonia from India to Japan.
- This agreement will help establish a robust supply chain from production in India to consumption in Japan, paving the way for future collaborations in the green energy sector.
- This agreement reinforces India’s position as a key player in the global green energy market and reflects the Government of India’s steadfast support for green hydrogen and renewable energy initiatives.
What is Green Ammonia?
- Ammonia has long been used as a fertilizer but is typically formed from hydrogen isolated from natural gas rather than water. In this process a large volumes of emissions take place.
- Ammonia is typically produced by combining hydrogen and nitrogen through a method known as the Haber-Bosch process. This “brown ammonia” uses fossil fuels both to provide the hydrogen and the energy source.
- Given that global ammonia production accounts for 1.3% of energy-related CO2 emissions.
- Green ammonia relies on renewable energy, and derives its hydrogen from water and its nitrogen from air.
- This form of ammonia production is typically more expensive but is becoming cheaper, not least as renewable energy prices fall.
