MHI Study Highlights Cost Reduction Potential for India-Singapore Green Ammonia Supply Chain

Mitsubishi Heavy Industries (MHI) has completed a study indicating that significant cost reductions could be achieved by optimising the value chain for exporting green hydrogen and green ammonia produced in India for use in markets such as Singapore.

The study, titled “Master Plan for the Optimal Facilities and Logistics Required to Export Green Hydrogen and Green Ammonia from India,” was conducted under Japan’s Ministry of Economy, Trade and Industry (METI) FY2023 Global South Future-Oriented Co-Creation supplementary programme. A report outlining the findings has been published by METI.

Study Evaluates India-to-Singapore Green Ammonia Supply Chain

The analysis examined the economic feasibility of producing green ammonia in India using renewable energy and supplying it to Singapore for power generation and marine bunkering.

MHI developed a model covering the entire value chain—from production and storage to transportation and end use—and applied Mixed-Integer Linear Programming (MILP) to optimise facility design and operational planning with the objective of minimising overall costs.

The study incorporated production data and market information provided by industry partners, including Indian green hydrogen and ammonia developer Hygenco.

According to MHI, the findings suggest that optimising operations across the full value chain could substantially reduce production and logistics costs.

Odisha Project Supports Supply Potential

The study references Hygenco’s planned green ammonia facility in Odisha, located on India’s east coast.

The project is expected to have an annual production capacity of 1.1 million tonnes of green ammonia, positioning it as a potential supply source for export markets in Asia.

The analysis also identified opportunities to lower costs by coordinating operations among value chain participants and by managing seasonal variations in renewable energy generation in India.

Governments and Industry Discuss Green Ammonia Roadmap

Based on the study findings, MHI engaged with stakeholders in India and Singapore to discuss measures required to establish a commercially viable green hydrogen and green ammonia supply chain.

The company said discussions with government agencies included proposals to stimulate green ammonia demand, reduce capital costs, support technology development, recognise green fuel premiums and establish a coordinated master plan for cross-border value chain development.

MHI stated that it intends to continue collaborating with government authorities and industry partners in both countries to advance green fuel production and utilisation.

Focus on Decarbonised Fuel Value Chains

As governments and industries pursue decarbonisation strategies, green hydrogen and green ammonia are increasingly being explored as low-carbon energy carriers for sectors including power generation, shipping and heavy industry.

MHI said it will continue supporting the development of decarbonised fuel value chains and work with public and private stakeholders to promote the commercial deployment of green hydrogen and green ammonia projects.