ACME to supply green ammonia to Japan 

ACME Group and IHI Corporation, a Japanese integrated heavy industry group, signed an offtake term sheet for supply of green ammonia from Odisha.

CME Group, a leading renewable energy company in India, and IHI Corporation, a Japanese integrated heavy industry group, signed an offtake term sheet for supply of green ammonia from Odisha, India, to Japan. The term sheet was signed by Founder and Chairman of Acme Group, Manoj Upadhyay, and President and CEO of IHI Corporation, Hiroshi Ide, in the presence of Union Minister for Power and New and Renewable Energy, RK Singh.

The green ammonia will be produced at ACME’s 1.2 MMTPA green ammonia project being developed at Gopalpur in the state of Odisha. The total investment for the 1.2 MMT per annum plant will be 5 billion USD. The term sheet between IHI and Acme covers the supply of 0.4 MMTPA (million metric tons per annum) of green ammonia from Phase 1 of the Odisha project in Gopalpur on a long-term basis. Both companies wish to partner across the value chain, starting from production to logistics and supply to Japanese customers, and create a market for green ammonia for use in a range of applications in power generation and various industrial uses in Japan to reduce overall emissions.

This strategic offtake agreement and partnership represents the dedication of both companies to build upon the existing strong relationship between the two countries and contribute to both India’s National Green Hydrogen mission as well as Japan’s Net Zero commitment, with shared vision of sustainability and innovation.

Speaking about the agreement, the Union Minister for Power and New and Renewable Energy RK Singh said that this is one of the first and largest agreements in the world in the field of green hydrogen and green ammonia. “Japan has been a close friend and partner of India. This collaboration in renewable energy in going green will further strengthen our partnership. India’s cost of making green hydrogen and green ammonia is already among the most competitive in the world. We are going to emerge as one of largest manufacturers of green hydrogen and green ammonia in the world,” he added.

The Minister underlined the strategic importance of the partnership between India and Japan. “Our partnership with Japan is strategic; it will grow stronger. Japan and other developed countries have huge requirements for green hydrogen, green ammonia, which India shall be able to supply at most competitive rates.”

Singh said that the agreement marks a landmark occasion, ushering in a new world. “This is a new world where we replace fossil fuels and carbon with green and renewable fuels such as green hydrogen and green ammonia. I congratulate both Acme and IHI for this partnership. May the partnership between Japan and India become bigger and stronger in the times to come.”

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New and Renewable Energy Secretary Bhupinder Singh Bhalla, Ambassador of Japan to India, Hiroshi Suzuki, and CMD SECI, RP Gupta were also present. Speaking about the strategic partnership, Ambassador of Japan to India Hiroshi Suzuki said that the signing of the term sheet marks a major milestone. “The partnership between Acme and IHI will bring remarkable success, given the potential of globally competitive green hydrogen in India. I express the Government of Japan’s unwavering support in taking forward the collaboration between India and Japan in the energy sector.”

The Ambassador said that India-Japan Clean Energy Partnership, established by Prime Minister Narendra Modi and Prime Minister Fumio Kishida, has been driving the cooperation between the two countries. “I express the Government of Japan’s unwavering support in taking forward the collaboration between India and Japan in the energy sector”,.

The Ambassador also requested the Union Power and NRE Minister for the early signing of the Green Hydrogen and Green Ammonia Joint Declaration of Intent (JDI) involving the Ministry of Economy, Trade, and Industry, Government of Japan, and the Ministry of New and Renewable Energy (MNRE), Government of India.

Speaking on the occasion, President and Director, Acme Group, Ashwani Dudeja said: “India is well positioned to develop the renewable resources and produce competitive green molecules for export as well as domestic consumption in applications which are otherwise difficult to decarbonise”. He also emphasised the need for support from the Government of India and Government of Odisha in developing the green ammonia project at Gopalpur.

Director and Managing Executive Officer, IHI Corporation, Jun Kobayashi said: “This agreement builds upon our earlier MoU with ACME and represents the strong relationship and alignment between the two companies in developing the market for this new generation fuel”.

Under this agreement, ACME and IHI plan to compete with relatively cheaper but less environment-friendly blue ammonia supply with the active support and incentives being offered by the Central Government of India under the National Green Hydrogen Mission and State Government of Odisha.