Reduced cost of exporting green ammonia from India to Singapore could support bunkering needs. File Image / Pixabay

Mitsubishi Heavy Industries (MHI) states green ammonia produced in India could become far more cost-competitive if the entire supply chain is planned and operated as a single system.

The finding comes from a study looking at exports from India to Singapore, where the fuel could be used for both power generation and bunkering, MHI said in a press release on Friday.

Commissioned by Japan's Ministry of Economy, Trade and Industry (METI), the study examined the economics of producing green hydrogen and green ammonia in India, which has access to relatively low-cost renewable energy.

Rather than looking at individual parts of the supply chain, MHI modelled everything from production and storage to shipping and fuel supply.

It found that coordinating operations across the value chain could significantly reduce overall costs.

The study also pointed to additional savings by adjusting operations to seasonal changes in renewable energy generation in India.

The analysis was carried out using production data and local market information from project partners, including green ammonia developer Hygenco.

Hygenco is developing a green ammonia plant in the Indian State of Odisha with an annual production capacity of 1.1 million mt.

Following the study, MHI held discussions with industry stakeholders in India and Singapore on what would be needed to turn the proposed value chain into a commercial reality.

The company also recommended that the two governments support demand creation for green ammonia, lower project capital costs, encourage technology development and recognise the green premium associated with low-carbon fuels.

MHI said it will continue working with governments and industry partners to advance international value chains for decarbonised fuels, including green ammonia.