Singapore's Sembcorp Industries has announced a strategic collaboration involving its green hydrogen division, aiming to supply green ammonia from India to Japan in partnership with two prominent Japanese companies. This initiative serves as a significant step toward solidifying Sembcorp's position as a leading supplier of green energy. The company's subsidiary, Sembcorp Green Hydrogen Pte, has formalized a memorandum of understanding (MoU) with Sojitz Corp, a Japanese conglomerate and Kyushu Electric Power, a major player in the energy sector. The MoU outlines potential opportunities for the production of green ammonia, demonstrating Sembcorp's commitment to fostering sustainable energy ventures and exploring avenues for green ammonia production with esteemed partners in Japan.
The company, backed by state-owned investor Temasek Holdings, emphasized that the partnership's focus on green ammonia holds significant importance as a pivotal energy source contributing to Japan's efforts to decarbonize its power supply mix. This collaboration aligns with the Japanese government's ambitious target of achieving net-zero emissions by 2050. The firm highlighted that green ammonia plays a critical role in supporting Japan's transition towards cleaner energy sources, ultimately aiding in the nation's pursuit of sustainable and environmentally friendly power generation.
Sembcorp revealed its recent announcement regarding a substantial investment plan. Last month, the company disclosed its commitment to invest approximately S$10.5 billion ($7.88 billion), representing around 75% of its total investments planned for the period spanning from 2024 to 2028. This significant financial commitment aims to bolster the growth of renewable energy ventures, as part of the company's overarching goal to slash carbon emissions by half by 2028. Moreover, the partnership agreement with Sojitz Corp and Kyushu Electric Power will further extend Sembcorp's presence in India. The company already boasts a substantial renewable portfolio of 3.7 gigawatts (GW) in the country, and this collaboration is set to expand its influence and participation in India's renewable energy landscape.