Mitsubishi Heavy Industries (MHI) has conducted an in-depth analysis of the economic viability of exporting Indian-produced green hydrogen and ammonia to countries like Singapore, highlighting potential cost reductions through value chain optimization.
The study, titled the “Master Plan for the Optimal Facilities and Logistics Required to Export Green Hydrogen and Green Ammonia from India,” was part of the FY2023 Global South Future-Oriented Co-Creation supplementary program commissioned by Japan's Ministry of Economy, Trade and Industry (METI). According to MHI, the findings suggest that optimizing the entire value chain could lead to significant cost reductions, making the large-scale implementation of green hydrogen and ammonia more feasible.
The analysis focused on producing green ammonia in India, leveraging the country's cost-competitive renewable energy resources, and utilizing it for electricity and bunkering in Singapore. The study was supported by local data and production information from partners such as Hygenco, an Indian developer of green ammonia. Hygenco is also advancing a green ammonia project on India's east coast in Odisha, with a planned annual production capacity of 1.1 million tons.
Based on the study's results, MHI engaged with stakeholders in India and Singapore to discuss the challenges and opportunities in realizing the business potential of green energy production and utilization. MHI also proposed measures to both governments to enhance production, introduction, and demand creation for green ammonia, emphasizing the need for a comprehensive master plan to establish an efficient value chain.
MHI's analysis employed a model that integrated the entire value chain from production to transportation, using Mixed-Integer Linear Programming to optimize facility specifications and operations to minimize costs. The study identified potential cost reductions through operational optimization, considering factors such as seasonal fluctuations in renewable energy output in India.
Proposed measures to the Indian and Singaporean governments included demand creation for green ammonia, capital cost reduction, technology development support, and evaluation of green premiums. MHI intends to maintain discussions with government and business stakeholders to further these initiatives.
The MHI Group aims to contribute to global decarbonization efforts by supporting strategies and projects that promote carbon neutrality. The company plans to continue collaborating with government agencies and businesses in Japan and abroad, focusing on decarbonized fuel value chains.