Mitsubishi Heavy Industries has found that optimizing the production, logistics and transportation of green hydrogen and green ammonia from India to Singapore could significantly reduce costs across the decarbonisation value chain. The study, conducted under Japan’s METI program with partner Hygenco, highlights the potential to strengthen green ammonia supply for power generation and marine bunkering while supporting global shipping’s energy transition.
TOKYO – June 26, 2026 – Mitsubishi Heavy Industries (MHI) has concluded that significant cost reductions are achievable across the green hydrogen and green ammonia value chain by optimizing production, logistics and operations between India and Singapore, according to a study conducted under Japan’s Ministry of Economy, Trade and Industry (METI) Global South Future-Oriented Co-Creation Program.
The analysis examined the economic viability of producing green hydrogen and green ammonia in India using low-cost renewable energy before exporting the fuels to Singapore for power generation and marine bunkering, offering new insights into how cross-border value chains can accelerate maritime decarbonisation while improving commercial competitiveness.
India’s renewable energy advantage
As governments and industry seek scalable pathways to decarbonise hard-to-abate sectors, green hydrogen and green ammonia are increasingly viewed as critical fuels for shipping, power generation and heavy industry.
However, high production and transportation costs remain one of the biggest barriers to widespread adoption.
MHI’s study focused on India, where abundant renewable energy resources provide a cost-competitive environment for producing green hydrogen and ammonia. The company evaluated how these fuels could be transported to Singapore and utilized for electricity generation and marine bunkering while minimizing costs across the entire supply chain.
The study was carried out in collaboration with Hygenco, MHI’s Indian project partner and a developer of green hydrogen and ammonia projects.
Optimising the entire value chain
Rather than assessing individual assets in isolation, MHI developed a comprehensive model covering the full value chain, from renewable energy-powered production facilities and ammonia synthesis plants to storage, export terminals, shipping logistics and end-use applications in Singapore.
Using Mixed-Integer Linear Programming (MILP), the company optimized facility specifications and operational schedules to identify the lowest-cost configuration across the entire supply chain.
According to MHI, the analysis demonstrated that coordinated optimisation throughout the value chain could deliver substantial cost reductions compared with independently operated facilities.
The study also found opportunities to reduce costs by adjusting operations according to seasonal fluctuations in renewable energy generation in India while improving coordination between producers, logistics providers and end users.
Supporting Singapore’s bunkering ambitions
One of the study’s key scenarios examined the use of Indian-produced green ammonia for marine bunkering in Singapore, one of the world’s largest bunkering hubs and a major focus of global shipping decarbonisation efforts.
As demand grows for zero-carbon marine fuels, establishing reliable international supply chains will become increasingly important for ports seeking to supply alternative fuels to oceangoing vessels.
The findings suggest that optimizing production and logistics could improve the commercial viability of supplying green ammonia to Singapore’s maritime sector.
Collaboration with governments and industry
Following completion of the analysis, MHI engaged with government agencies and industry stakeholders in both India and Singapore to discuss the requirements for establishing a commercially viable green ammonia value chain.
The company proposed several policy measures, including creating stronger market demand for green ammonia, reducing capital investment costs, supporting technology development and recognizing the value of green fuel premiums.
MHI also highlighted the importance of developing a coordinated master plan covering production, transportation, infrastructure and fuel demand to accelerate deployment.
The company said discussions with governments and commercial partners will continue as efforts advance to establish practical green fuel supply chains linking the two countries.
Hygenco’s expanding production capacity
The study incorporated operational data provided by Hygenco, which is developing a large-scale green ammonia production project in Odisha on India’s east coast.
The facility is planned to produce approximately 1.1 million tonnes of green ammonia annually, positioning it among the country’s significant emerging green fuel projects intended for both domestic use and export markets.
Supporting global decarbonisation
The research forms part of Japan’s broader efforts to support decarbonisation projects across emerging economies through METI’s Global South Future-Oriented Co-Creation Program.
MHI said it will continue working with governments and industry partners in Japan and overseas to promote decarbonised fuel value chains and accelerate implementation of projects supporting a carbon-neutral society.
As international shipping moves toward stricter emissions regulations and growing demand for zero-carbon fuels, optimized green ammonia supply chains are expected to play an increasingly important role in enabling large-scale marine fuel adoption and supporting global energy transition efforts.
About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial companies, operating across energy, smart infrastructure, industrial machinery, aerospace and defense. The company is actively developing technologies and infrastructure that support decarbonisation, including hydrogen, ammonia, carbon capture, and next-generation energy systems, while working with governments and industry to accelerate the global transition toward carbon neutrality.
Source:MHI