Mitsubishi Heavy Industries, Ltd. (MHI) has published findings from a study examining the economic viability of exporting green hydrogen and green ammonia produced in India to markets such as Singapore, with the Japanese industrial group claiming that optimisation across the full value chain could yield dramatic cost reductions.

The study, titled 'Master Plan for the Optimal Facilities and Logistics Required to Export Green Hydrogen and Green Ammonia from India,' was conducted under Japan’s Ministry of Economy, Trade and Industry (METI) FY2023 Global South Future-Oriented Co-Creation supplementary programme, which was managed on consignment by Boston Consulting Group. A report has been published by METI.

The analysis was carried out in collaboration with Hygenco, an Indian developer of green ammonia, which provided production data and local information to support the modelling. Hygenco is currently developing a green ammonia project in Odisha, on India’s east coast, with an annual production capacity of 1.1 million tonnes.

The study focused on a scenario in which green ammonia produced in India — where renewable energy costs are considered competitive — is transported to Singapore for use in electricity generation and bunkering. According to MHI, the analysis used mixed-integer linear programming to model the entire value chain from production to transportation, optimising the specifications of each facility and operations in time units to minimise overall costs.

The results, according to MHI, indicated that cost reductions are possible through optimisation of operations and cooperation between business operators across the value chain, including by taking advantage of seasonal fluctuations in renewable energy output in India.

MHI said it engaged with both the Indian and Singaporean governments during the study, proposing measures covering production, introduction and demand creation for green ammonia, and working on the formulation of a master plan to establish a value chain between the two countries.

Among the measures proposed to both governments were the creation of demand for green ammonia, reduction of capital costs, support for technology development and evaluation of a green premium.

MHI said it intends to continue discussions with government agencies and business stakeholders in India and Singapore, and that the group would work to support decarbonisation strategies and the implementation of related projects, with a focus on value chains for decarbonised fuels.

The study forms part of broader efforts to assess the commercial readiness of green ammonia as a marine fuel, as the shipping industry faces mounting pressure to reduce emissions under frameworks being developed by the International Maritime Organization. Reducing the cost of green ammonia supply chains remains widely cited as a barrier to large-scale adoption.