Singapore-headquartered Sembcorp Industries, a leading provider of energy and urban solutions, announced plans to establish a green ammonia plant in Tamil Nadu with 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, according to officials.

Sembcorp Industries had previously 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 in Tuticorin. The foundation stone laying ceremony followed the "Heads of Terms" agreement signed between Sembcorp Green Hydrogen Pte Ltd., Kyushu Electric Power Company, Sojitz Corporation, and Nippon Yusen Kabushiki Kaisha, concerning cross-border green ammonia exports from India to Japan.

According to a company statement, Sembcorp will operate and produce green ammonia at the plant, which will be situated on a 160-acre site in Tuticorin. The plant is projected to produce 200,000 metric tonnes of green ammonia annually for export to Japan. Sembcorp also confirmed that the front-end engineering and design work for the plant has already commenced.

In a statement, Stalin expressed his confidence in the project, stating that Tamil Nadu has been a frontrunner in renewable energy initiatives and plays a significant role in advancing India?s energy transition targets. He described the project in Tuticorin 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 nations?India, Singapore, and Japan?to work towards a sustainable future for the region, he added. Sembcorp is collaborating with various partners to explore the production and export of green ammonia as a pathway to advance energy transition in the region. Leveraging its existing renewables portfolio of 4.7GW in India, Sembcorp aims to produce competitively priced green ammonia in the country, utilising its high asset productivity and expertise in large-scale, low-cost green hydrogen production.