As part of its efforts to solidify its standing as a significant producer of green energy, Singapore’s Sembcorp Industries said that its green hydrogen unit has teamed up with two Japanese companies to export green ammonia made in India to Japan.
In order to explore possible avenues for producing green ammonia, Kyushu Electric Power (9508.T) and the Japanese conglomerate Sojitz Corp (2768.T) have inked a memorandum of understanding, according to a statement released by Sembcorp Green Hydrogen Pte on Monday.
The company, supported by state-owned investor Temasek Holdings, said in a statement that “the partnership will support the (Japanese) government’s goal to achieve net zero by 2050 with green ammonia as a critical energy source to decarbonize Japan’s power supply mix.”
In an effort to cut carbon emissions in half by 2028, Sembcorp announced last month that it would allocate around S$10.5 billion ($7.88 billion), or almost 75% of its total investments in 2024–2028, to support the growth of renewables.
Additionally, it said that the arrangement will increase Sembcorp’s presence in India, where it already has a 3.7 gigawatt (GW) gross renewable portfolio.
Hiroshi Yoshida, the Japanese Vice-Minister for Policy Coordination (Internal Affairs), recently praised India’s technological strength. According to him, India has to be actively involved in conversations on artificial intelligence.India is a nation of great importance. Regarding AI policy, Prime Minister Modi showed his enthusiasm. India is the best nation in the world for technology. India must take a more active role in the conversation on AI.
Furthermore, Masahiro Goto, global head of investment banking at Nomura, told Swaraj Dhanjal in an interview that Japanese businesses consider India as a reliable long-term partner for manufacturing as well as a top consumer market. Given that India is one of the few economies with both scale and multi-decade growth prospects, the Japanese company is optimistic about the country. According to Goto, Nomura sees India as a strategically significant Asian market and plans to keep investing in growing its franchise there.
Three factors have contributed to the good performance of Japanese equities in 2023: the country’s economy emerging from a deflationary climate; advancements in corporate governance; and Japan’s attraction as a destination for diversifying investments within the Asia-Pacific region.
