New Delhi: ACME Group, a leading renewable energy company in India, and IHI Corporation, a Japanese integrated heavy industry group, signed an offtake term sheet for the supply of green ammonia from Odisha, India, to Japan. The term sheet was signed by Manoj Upadhyay, Founder and Chairman of Acme Group, and Hiroshi Ide, President and CEO of IHI Corporation, in the presence of several dignitaries, including R. K. Singh, Union Minister for Power and New & Renewable Energy, Bhupinder Singh Bhalla, New & Renewable Energy Secretary, Hiroshi Suzuki, Ambassador of Japan to India, and R. P. Gupta, CMD SECI.
Under this agreement, ACME and IHI aim to compete with the cheaper but less environmentally friendly blue ammonia supply, leveraging the active support and incentives offered by the Central Government of India under the National Green Hydrogen Mission (NGHM) and the State Government of Odisha.
The Green Ammonia will be produced at ACME’s 1.2 MMTPA Green Ammonia project being developed at Gopalpur in Odisha. The total investment for the 1.2 MMT per annum plant is USD 5 billion. The term sheet between IHI and Acme covers the long-term supply of 0.4 MMTPA (million metric tons per annum) of green ammonia from Phase 1 of the Odisha project in Gopalpur. Both companies intend to collaborate across the entire value chain, from production and logistics to supplying Japanese customers and creating a market for green ammonia in Japan for various applications in power generation and industries, aiming to reduce overall emissions.
This strategic offtake agreement and partnership showcase the commitment of both companies to strengthen the existing strong relationship between India and Japan and contribute to both India’s National Green Hydrogen mission and Japan’s Net Zero commitment, fostering a shared vision of sustainability and innovation.
Speaking about the agreement, R. K. Singh, Union Minister for Power and New & Renewable Energy, stated that this is one of the first and largest agreements in the field of green hydrogen and green ammonia globally. He further emphasized the strategic importance of the India-Japan partnership and India’s potential to become a major green hydrogen and ammonia manufacturer.
The Ambassador of Japan to India, Hiroshi Suzuki, echoed this sentiment, highlighting the potential of India’s globally competitive green hydrogen and expressing the Government of Japan’s unwavering support for the collaboration in the energy sector. He also requested the early signing of a Green Hydrogen and Green Ammonia Joint Declaration of Intent (JDI) between the Ministry of Economy, Trade and Industry of Japan and MNRE.
Ashwani Dudeja, President and Director of Acme Group, emphasized India’s favorable position for developing renewable resources and producing competitive green molecules for export and domestic consumption, particularly for applications challenging to decarbonize. He also recognized the crucial role of government support from India and Odisha in developing the Gopalpur green ammonia project.
Similarly, Jun Kobayashi, Director and Managing Executive Officer of IHI Corporation, emphasized how this agreement builds upon their previous MoU with ACME and strengthens the collaboration between the two companies in developing the market for this new generation fuel.
The senior management of both companies previously visited Bhubaneswar and met with Naveen Patnaik, Chief Minister of Odisha, and other government officials. The green hydrogen and ammonia project at Gopalpur, Odisha, is being developed by ACME with a planned capacity of 1.2 MMTPA to be implemented in phases, with the first production expected within 2027. Over its life cycle, the project will contribute to a significant reduction in global GHG emissions by 54 million tons of CO2 equivalent.