Japan’s IHI Corporation and Yara Clean Ammonia, a subsidiary of Norway-based Yara International, have concluded a memorandum of understanding (MoU) to jointly assess potential collaboration in the clean ammonia value chain.
According to IHI, under the agreement, the two companies will explore ways to enhance marine transportation of clean ammonia that IHI intends to procure from India and other countries.
Furthermore, the parties will also assess setting up a collaborative international ammonia transportation system to accommodate supply fluctuations and develop a clean ammonia production business.
Yara said this initiative highlights the role of ammonia as a next-generation clean energy source, capable of delivering decarbonization solutions across various fields.
Murali Srinivasan, Senior Vice President of Yara Clean Ammonia, stated: “The MoU with IHI signifies a shared vision to explore the diverse potential of clean ammonia, leveraging Yara’s global leadership in ammonia production and IHI’s innovative approaches in marine transportation.”
“Our collaboration is set to investigate the efficient transport and production of clean ammonia, eyeing its broader applications in reducing CO2 emissions, from power generation to serve as a sustainable fuel and chemical base.”
Commenting on ammonia as an advanced clean energy source, IHI noted that the company will cater to projected demand growth for clean ammonia by leveraging its global position to build a value chain encompassing everything from production to supply to end customers.
To remind, in 2024, both Yara and IHI signed ammonia supply deals with the Indian renewable energy company ACME.
Yara and ACME signed a long-term firm and binding agreement for the supply of ammonia produced in Oman with reduced CO2 emissions, while IHI and ACME signed an offtake term sheet for the supply of green ammonia from India to Japan.