Japan Approves India-Sourced Low-Carbon Ammonia Supply Chain Under Hydrogen Support Scheme

Japan has approved a large-scale low-carbon ammonia supply chain linking India and Japan under its Hydrogen Society Promotion Act, marking a step forward in the country’s efforts to secure low-carbon fuel imports for power generation and industrial applications.

The certification, granted by Japan’s Minister of Economy, Trade and Industry and Minister of Land, Infrastructure, Transport and Tourism, covers a project led by IHI Corporation in partnership with Kobelco Power Kobe, Sumitomo Chemical, Nippon Beet Sugar Manufacturing, Hokkaido Electric Power, Mitsubishi Gas Chemical, and UBE Corporation.

The project has been approved under Japan’s “Support focusing on the price gap” scheme, which is designed to help bridge the cost difference between conventional fossil fuels and low-carbon hydrogen and ammonia.

India to Supply Low-Carbon Ammonia for Japanese Industries

Under the initiative, IHI will procure low-carbon ammonia from a production project being jointly developed with ACME Group in Odisha, India, before supplying it to the seven participating Japanese companies.

The imported ammonia will be used as a fuel for thermal power generation and as a feedstock for chemical manufacturing and other industrial processes, supporting efforts to reduce greenhouse gas emissions across multiple sectors.

Supply Chain Planned for Fiscal 2030

According to the companies, the certification represents a key milestone in establishing a commercial ammonia value chain targeted for operation from fiscal 2030 onward.

The participating companies said they intend to expand the use of low-carbon ammonia across Japan’s energy and industrial sectors as part of broader efforts to support the country’s carbon neutrality objectives.