Mitsubishi Heavy Industries (MHI) has identified pathways to significantly reduce the cost of transporting green hydrogen and green ammonia from India to Singapore. Through a study commissioned by Japan’s Ministry of Economy, Trade and Industry (METI), MHI found that optimizing the entire value chain—from production to logistics—can overcome current economic barriers to large-scale decarbonization.
How can green ammonia exports from India become cost-effective?
The MHI study suggests that dramatic cost reductions are possible if the entire value chain is optimized. Instead of looking at production and shipping as isolated steps, MHI used Mixed-Integer Linear Programming to model a continuous system. This mathematical method allows for the optimization of facility specifications and time-based operations to minimize total expenditure.
A critical factor in these savings is the ability to manage seasonal fluctuations in India’s renewable energy output. By coordinating operations between different business operators in the value chain, companies can better align energy production with transportation schedules, reducing waste and lowering the overall price of the final product.
Hygenco, an Indian green ammonia developer, is currently developing a project on India’s east coast in Odisha with an annual production capacity of 1.1 million tons.
Why is the India-Singapore corridor a focus for decarbonization?
The partnership focuses on leveraging India’s competitive renewable energy landscape to meet Singapore’s growing demand for clean fuels. According to the MHI report, the primary end-uses for this green energy in Singapore include electricity generation and bunkering, which is the process of supplying fuel to ships.
The study was conducted under METI’s FY2023 Global South Future-Oriented Co-Creation supplementary program. This program aims to build strong supply chains and realize carbon neutrality in Global South countries by combining the strengths of Japanese and local businesses.
The Role of Strategic Partnerships
MHI utilized production data and local information provided by cooperating partners, including Hygenco, to ensure the study’s economic models were grounded in real-world capacity. This collaboration allows for a more accurate assessment of how Indian production can realistically support Singaporean energy needs.
What measures are needed to scale green energy production?
MHI has engaged with both the Indian and Singaporean governments to propose specific measures required to turn these findings into business opportunities. The company is advocating for a comprehensive master plan to establish a reliable value chain.
According to MHI’s proposals, the following steps are necessary to drive adoption:
- Demand Creation: Actively building markets for green ammonia to ensure long-term stability.
- Capital Cost Reduction: Implementing measures to lower the initial investment required for large-scale facilities.
- Technology Support: Providing resources to advance the technical capabilities of the supply chain.
- Green Premium Evaluation: Developing frameworks to value the environmental benefits of green energy over traditional fossil fuels.
Frequently Asked Questions
What is green ammonia?
Green ammonia is produced using renewable energy sources, such as wind or solar, to power the electrolysis of water and the subsequent nitrogen fixation process.
Who commissioned the MHI study?
The study was commissioned by Japan’s Ministry of Economy, Trade and Industry (METI) as part of a program to support future growth industries.
Where will the green ammonia be used in Singapore?
The study identifies two primary uses: for electricity generation and for bunkering (fueling ships).
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