Mitsubishi Heavy Industries says India-to-Singapore green ammonia supply chain could cut decarbonisation costs
Mitsubishi Heavy Industries (MHI) has concluded that significant cost reductions could be achieved across the green hydrogen and green ammonia value chain by optimising production, logistics and operations between India and Singapore, according to a new study conducted under a Japanese government-backed decarbonisation programme.
The analysis examined the economic viability of producing green hydrogen and green ammonia in India using low-cost renewable energy and exporting the fuel to Singapore for applications including power generation and marine bunkering. The study was carried out in collaboration with Indian green ammonia developer Hygenco under Japan’s Ministry of Economy, Trade and Industry (METI) “Global South Future-Oriented Co-Creation Program”.
MHI said the findings suggest that substantial cost savings are possible when the entire value chain—from production and storage to shipping and final utilisation—is planned and operated as an integrated system rather than as separate projects.
The study modelled a scenario in which green ammonia is produced in India, where renewable electricity costs are among the most competitive globally, and then transported to Singapore to support industrial decarbonisation and the maritime fuel transition. Singapore is increasingly positioning itself as a regional hub for low-carbon fuels and green shipping.
Using production data and local market information supplied by partners including Hygenco, MHI created a detailed optimisation model covering the full supply chain. The company employed mixed-integer linear programming techniques to determine the most cost-effective combination of facility specifications, transport logistics and operational schedules.
According to MHI, the analysis indicated that additional savings could be achieved through coordinated operations among producers, transport providers and end-users, particularly by taking advantage of seasonal fluctuations in renewable energy generation in India.
Hygenco is currently developing a major green ammonia project in Odisha on India’s east coast, with planned production capacity of 1.1 million tonnes per year, which could become a significant supply source for future export markets.
Following the study, MHI held discussions with business operators in India and Singapore to identify the remaining challenges for commercial deployment, including infrastructure development, demand creation and policy support.
The company also engaged with the governments of India and Singapore, proposing measures to support the development of a cross-border green ammonia value chain. Recommendations included stimulating demand for green ammonia, reducing capital costs, supporting technology development and recognising the value of low-carbon fuel premiums.
MHI said the work forms part of its broader strategy to support global decarbonisation through integrated fuel supply chains and international energy partnerships.
As countries seek alternatives to fossil fuels for power generation, shipping and industrial processes, green ammonia is increasingly being viewed as a promising hydrogen carrier and zero-carbon fuel. However, reducing production and transportation costs remains one of the sector’s biggest challenges.
The latest study suggests that strategic coordination between producing and importing countries could play a crucial role in making large-scale green hydrogen and ammonia trade commercially competitive in Asia.
