A consortium of seven Japanese companies, led by IHI (TYO:7013), has received government certification for its plan to utilize low-carbon ammonia produced in India, under a price-gap support scheme tied to Japan's Hydrogen Society Promotion Act.
IHI will offtake ammonia from a project with ACME Group in Odisha and supply it to the partners for use in power generation and industrial feedstock, aiming to cut environmental impact, according to a statement on Tuesday.
IHI will also develop domestic infrastructure and use the fuel at its own facilities, while planning to expand the supply chain safely across sectors in Japan and abroad.
The other Japanese companies are Kobe Steel (TYO:5406), Sumitomo Chemical (TYO:4005), Nippon Beet Sugar Manufacturing (TYO:2108), Hokkaido Electric Power (TYO:9509), Mitsubishi Gas Chemical (TYO:4182), and UBE (TYO:4208).
Earlier, Nikkei Asia reported that Tokyo and New Delhi are set to finalize support for a massive green ammonia venture between IHI and ACME during Prime Minister Modi's meeting with his Japanese counterpart later this week.