Japan Certifies Major India-to-Japan Low-Carbon Ammonia Supply Chain Under Hydrogen Support Scheme
A major international low-carbon ammonia supply chain linking India and Japan has been certified under Japan’s “Support focusing on the price gap” scheme, marking a significant step in the development of large-scale ammonia imports for industrial decarbonisation.
The plan, announced on 30 June 2026, brings together IHI Corporation, Kobelco Power Kobe (a Kobe Steel subsidiary), Sumitomo Chemical, Nippon Beet Sugar Manufacturing, Hokkaido Electric Power, Mitsubishi Gas Chemical and UBE Corporation, alongside project developer ACME Group in India.
Under the arrangement, IHI Corporation will offtake low-carbon ammonia produced at a manufacturing project being developed with ACME Group in Odisha, eastern India. The ammonia will then be supplied to the seven participating Japanese companies for use across power generation, chemical production and other industrial applications.
The certification was granted by Japan’s Minister of Economy, Trade and Industry and the Minister of Land, Infrastructure, Transport and Tourism under the Hydrogen Society Promotion Act. The scheme is designed to bridge the cost gap between low-carbon fuels and conventional fossil-based alternatives, helping to accelerate the creation of new hydrogen and ammonia supply chains.
The “Support focusing on the price gap” mechanism provides financial support through the Japan Organization for Metals and Energy Security (JOGMEC), enabling certified projects to compete more effectively with established carbon-intensive fuels. The initiative is widely seen as a key policy tool supporting Japan’s long-term carbon neutrality goals.
The participating companies said the project represents an important milestone in building a stable and scalable ammonia value chain expected to become operational from fiscal 2030 onwards. The imported ammonia is intended to play a role in reducing emissions across multiple sectors, including thermal power generation and industrial chemical processes.
The partnership reflects Japan’s broader strategy of securing diversified low-carbon fuel imports to support its energy transition, while leveraging international cooperation with renewable energy producers such as ACME Group in India.
Industry participants said the initiative will help accelerate the commercial deployment of low-carbon ammonia as both a fuel and feedstock, strengthening supply security while contributing to global decarbonisation efforts.
The companies involved will continue to develop the project towards full-scale implementation, with the aim of expanding ammonia utilisation across Japan’s energy and industrial systems in the coming decade.
