A consortium of seven leading Japanese companies, including IHI Corporation, Kobelco Power Kobe Inc., Sumitomo Chemical Co., Ltd., Nippon Beet Sugar Manufacturing Co., Ltd., Hokkaido Electric Power Co., Inc., Mitsubishi Gas Chemical Company, Inc., and UBE Corporation, received government certification for its plan to utilize low-carbon ammonia produced in India.
The project has been approved under Japan’s “Support Focusing on the Price Gap” scheme established under the Hydrogen Society Promotion Act. The certification was jointly granted by Japan’s Minister of Economy, Trade and Industry and the Minister of Land, Infrastructure, Transport and Tourism, reinforcing the country’s commitment to building a secure low-carbon hydrogen and ammonia supply chain.
India to Play a Key Role in Low-Carbon Ammonia Production
As part of the initiative, IHI Corporation will procure low-carbon ammonia from a production facility being jointly developed with ACME Group in Odisha, India. The project is expected to position India as an important supplier of clean ammonia for international markets while supporting the country’s ambitions to become a global hub for green and low-carbon energy. After production, IHI will transport the ammonia to Japan, where it will be supplied to the consortium partners for industrial use.
Supporting Power Generation and Industrial Decarbonisation
The participating companies plan to utilize the imported low-carbon ammonia across multiple applications. The fuel will primarily be used for power generation, chemical manufacturing, industrial feedstock and other energy-intensive industrial processes. By replacing conventional fossil fuel-based inputs, the project aims to significantly reduce greenhouse gas emissions while accelerating industrial decarbonisation across Japan.
Milestone for Japan’s Future Ammonia Value Chain
The certification represents a significant milestone in the development of Japan’s low-carbon ammonia value chain, which is expected to become operational from fiscal year 2030 onward. The government-backed initiative provides greater confidence for long-term investments in clean ammonia production, transportation, and utilization while supporting Japan’s broader energy transition strategy.
Advancing a Carbon-Neutral Future
The seven companies intend to steadily expand the adoption of low-carbon ammonia across power generation and industrial sectors. By strengthening international partnerships and developing a reliable cross-border ammonia supply chain between India and Japan, the consortium aims to accelerate the commercialization of low-carbon fuels and contribute to the realization of a carbon-neutral society. As reported by alchempro.com, the project also highlights the growing importance of India in the global clean energy landscape, as international companies increasingly invest in low-carbon hydrogen and ammonia production to support worldwide decarbonisation efforts.
