ACME Group and IHI Corporation have signed an offtake term sheet for the supply of green ammonia from Odisha, India to Japan. The agreement aims to compete with the cheaper but less environment-friendly blue ammonia supply, with active support and incentives offered by the Central Government of India under the National Green Hydrogen Mission (NGHM) and State Government of Odisha.
The green ammonia will be produced at ACME’s 1.2 MMTPA Green Ammonia project being developed in Gopalpur, with a total investment of 5 billion USD.
The term sheet covers the supply of 0.4 MMTPA of green ammonia from Phase-1 of the Odisha project in Gopalpur on a long-term basis.
Both companies aim to partner across the value chain, starting from production to logistics, supply to Japanese customers, and create the market for green ammonia for use in power generation and various industrial uses in Japan to reduce overall emissions.
Union Minister for Power and New & Renewable Energy Shri R. K. Singh said that this is one of the first and largest agreements in the world in the field of green hydrogen and green ammonia.
He underlined the strategic importance of the partnership between India and Japan, stating that India will emerge as one of the largest manufacturers of green hydrogen and green ammonia in the world.
Assistant Director and Managing Executive Officer of IHI Corporation Shri Jun Kobayashi said that this agreement builds upon their earlier MoU with ACME and represents the strong relationship and alignment between the two companies in developing the market for this new generation fuel.
About ACME
ACME Group is one of the largest renewable Independent Power Producer in India with a portfolio of more than 5 GW of renewable energy capacity under operation and various stages of implementation. In 2021, Acme built what is perhaps the world’s first Green Ammonia plant in Bikaner, Rajasthan. Drawing upon its experience and strengths, ACME aspires to become a leading green energy provider from electrons to molecules and is developing several green hydrogen and ammonia projects in India, Oman and USA with an aim to have a portfolio of c. 10 MMTPA of green ammonia or equivalent hydrogen/derivatives by 2032. In line with the Government of India’s mission to establish India as a hub for green fuels, Acme is working with many potential customers in India to supply green hydrogen and ammonia. Acme has a global footprint with offices and representatives in Japan, Middle East, Europe and USA for the marketing and supply of green hydrogen and its derivatives to the international markets. For more information, please visit http://www.acme.in.
About IHI
IHI is a preeminent Japanese integrated heavy industry group that originated in 1853 and leveraged its shipbuilding technology to expand into onshore machinery, bridge, plant, aero-engine, and other manufacturing fields. IHI has provided various solutions in the Resource, Energy and Environment; Social Infrastructure; Industrial Systems and General-Purpose Machinery; and Aero Engine, Space and Defence business segments. It is developing technology for ammonia firing and is constructing a carbon-free fuel ammonia supply chain to help decarbonise the economy. For more information about IHI, please visit: https://www.ihi.co.jp/en/
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