Sembcorp Industries, a leading energy and urban solutions provider headquartered in Singapore, announced plans to set up a green ammonia plant in Tamil Nadu at an investment of Rs 362.3 billion. During the Tamil Nadu Investment Conclave held on Wednesday, Tamil Nadu Chief Minister M K Stalin laid the foundation stone for the project, which is expected to create 1,511 jobs, officials said.
Sembcorp Industries had earlier signed a Memorandum of Understanding with the state government during the Global Investors Meet in January 2024 for the development of the green ammonia facility at Tuticorin. The foundation stone laying ceremony followed the “Heads of Terms” agreement signed by Sembcorp Green Hydrogen Pte Ltd., Kyushu Electric Power Company, Sojitz Corporation and Nippon Yusen Kabushiki Kaisha, for cross-border export of green ammonia from India to Japan.
According to a statement from the company, Sembcorp will produce green ammonia at the plant, which will be located on a 160-hectare site in Tuticorin. The plant is expected to produce 200,000 metric tons of green ammonia annually for export to Japan. Sembcorp also confirmed that front-end engineering and design work for the plant has already begun.
In a statement, Stalin expressed confidence in the project, saying Tamil Nadu is a frontrunner in renewable energy initiatives and plays a significant role in advancing India's energy transition goals. He described the Tuticorin project as a stepping stone towards establishing Tamil Nadu as a global hub for green hydrogen production.
The collaborative project reflects the commitment of all partner countries – India, Singapore and Japan – to work towards a sustainable future for the region, he added. Sembcorp is working with various partners to explore the production and export of green ammonia as a pathway to promote the energy transition in the region. By leveraging its existing 4.7 GW renewable energy portfolio in India, Sembcorp aims to produce competitively priced green ammonia in the country, leveraging its high asset productivity and expertise in large-scale, low-cost green hydrogen production.