Japan and India Forge Energy Partnership with Green Ammonia Cooperation

    As Prime Minister Sanae Takaichi prepares to visit New Delhi in early July for a summit with Prime Minister Narendra Modi, a significant agreement is expected to be announced: the two governments have reportedly reached a consensus on supporting private-sector cooperation in hydrogen and green ammonia production in India. According to Japanese media reports, the joint statement following the summit will include a commitment to provide ongoing governmental support for commercial projects, including a major green ammonia venture with an estimated investment of approximately 480 billion yen (around $3.2 billion).

    The ACME-IHI Partnership: A Flagship Project

    At the heart of this cooperation is a joint venture between Japan's IHI Corporation and India's ACME Group, which has been developing India's largest green ammonia production facility in Gopalpur, Odisha.

    The project is planned to produce approximately 400,000 tonnes of green ammonia annually, with completion targeted for 2029-30, and production earmarked primarily for export to Japan. The joint venture arrangement, formalised following the signing of an initial Memorandum of Understanding in 2023, has seen IHI acquire a 30% stake in the project company, ACME Clean Energy, with ACME Group retaining the remaining 70%.

    Significant milestones have already been achieved. The necessary land has been secured, and the Front-End Engineering Design (FEED) has been successfully completed. The partners are now advancing detailed project development activities, including engineering, procurement, and construction (EPC) contracting, renewable energy integration, and ammonia evacuation infrastructure arrangements.

    Government Support and Strategic Context

    The forthcoming summit agreement will reportedly involve both governments providing continuous financial and policy support for private-sector hydrogen and green ammonia production plans in India. This represents an important progression beyond mere diplomatic endorsement, signalling concrete governmental facilitation of large-scale energy infrastructure.

    The collaboration directly supports the vision of the India–Japan Clean Energy Partnership, which was formalised at the 15th Japan–India Annual Summit in Tokyo in August 2025. On that occasion, then Prime Minister Shigeru Ishiba and Prime Minister Modi adopted a Joint Declaration of Intent on Clean Hydrogen and Ammonia. The ACME-IHI project is positioned as a concrete implementation of that shared vision, creating a large-scale supply chain for green ammonia between the two countries.

    Broader Commercial Ecosystem

    The ACME-IHI venture is not an isolated initiative. A growing ecosystem of commercial agreements is emerging between Japanese and Indian companies in the green ammonia sector.

    In April 2026, L&T Energy GreenTech Ltd (LTEGL), a wholly-owned subsidiary of Larsen & Toubro, signed a long-term supply agreement with Japan's Itochu Corporation to deliver 300,000 tonnes per annum of green ammonia on a captive take-or-pay basis. The green ammonia will be produced at Kandla in Gujarat, and Itochu plans to deploy it for marine bunkering, with Singapore—a major global marine fuel hub—emerging as a critical centre for ammonia bunkering.

    The agreement moves the two companies' relationship beyond the Joint Development Agreement they signed in July 2025, advancing from development-stage collaboration to securing committed long-term offtake. According to L&T Deputy Managing Director Subramanian Sarma, "By securing long-term demand through a reputed global partner like Itochu, we are strengthening the commercial foundation of our green ammonia platform, while contributing meaningfully to global decarbonisation".

    Earlier, in September 2025, ACME Cleantech entered into a memorandum of understanding for the long-term supply of green ammonia from India to Japan during Prime Minister Modi's official visit to Japan. The agreement was concluded in the presence of both prime ministers and supported the vision of positioning India as a global hub for green energy production.

    Japan's interest in Indian green ammonia has also been reflected in broader industry engagement. In early 2025, six Japanese companies—IHI Corporation, Hokkaido Electric Power, Mitsubishi Gas Chemical Company, Mitsui O.S.K. Lines (MOL), Mizuho Bank, and Tokyo Century Corporation—signed an MoU to explore investment opportunities in green ammonia production in India, targeting a facility in Odisha with annual production of about 400,000 tonnes for export to Japan.

    Economic and Strategic Rationale

    The strategic significance of this cooperation is underscored by the current geopolitical environment. According to Japanese press reports, the government's support for the project is being driven in part by energy security concerns, particularly given the disruption to Middle East energy supplies. The ammonia cooperation is understood to be part of a broader effort to promote stable energy procurement.

    For Japan, the partnership offers a pathway to diversify energy sources and support the adoption of lower-carbon alternatives. As a resource-constrained nation heavily dependent on energy imports, Japan has identified green ammonia—which is easier to store and transport compared to hydrogen—as a promising energy carrier for power generation and industrial applications. Securing a reliable supply from India reduces Japan's exposure to Middle Eastern fossil fuel volatility.

    For India, the cooperation advances the objectives of the National Green Hydrogen Mission, which envisions a production capacity of at least 5 million metric tonnes per annum by 2030, attracting investments exceeding $100 billion. The initiative is expected to catalyse industrial innovation, create green jobs, and reinforce India's energy security. Odisha's strategic location on India's eastern seaboard, with its proximity to East Asia, established port infrastructure, and ample land and water resources, makes it an ideal hub for large-scale green ammonia exports.

    Beyond ammonia, the upcoming summit is expected to address a wide range of economic security issues. According to Kyodo News, the joint declaration will likely cover five priority areas: semiconductors, critical minerals (including rare earths), information and communications technology, clean energy, and pharmaceuticals. The declaration is also expected to oppose economic coercion and confirm the importance of building resilient and reliable supply chains among like-minded countries.

    The future of cooperation

    The emerging Japan-India green ammonia partnership represents a significant convergence of strategic interests. For Japan, it offers energy security and a pathway to decarbonisation. For India, it provides investment, technology, and a market for its clean energy ambitions.

    The commercial agreements already signed—between ACME and IHI, L&T and Itochu—demonstrate that this is not merely governmental rhetoric but is being translated into bankable, capital-intensive projects. The estimated 480 billion yen investment in the ACME-IHI project alone underscores the scale of commitment.

    The Takaichi-Modi summit, scheduled for 1-3 July in New Delhi, is expected to provide further clarity on the timeline and framework for government support. As one of the largest foreign collaborations in India's green hydrogen and ammonia sector, the partnership could serve as a model for bilateral energy cooperation in the Indo-Pacific region, reinforcing the economic underpinnings of the broader strategic partnership between the two nations.