Indian Renewable Energy Company ACME to Supply Green Ammonia to Japan

#ACME #IndoJapanPartenership #GreenAmmonia

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 the largest manufacturers of green hydrogen and green ammonia in the world.” - R. K. Singh, Union Minister for Power and New and Renewable Energy

Jan 2024 : ACME 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 Manoj Upadhyay, Founder and Chairman, Acme Group and Hiroshi Ide, President and CEO, IHI Corporation. Union Minister for Power and New & Renewable Energy R. K. Singh was also present at the occasion.

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

The Green Ammonia will be produced at ACME’s 1.2 million metric tons per annum (MMTPA) Green Ammonia project being developed at Gopalpur in the state of Odisha. Total investment for the project will be US$ 5 billion. The term sheet between IHI and Acme 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 wish to partner across the value chain, starting from production to logistics, supply to the Japanese customers and to create the market for green ammonia for use in a range of applications in power generation and various industrial uses in Japan to reduce the 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 NGHM as well as Japan’s Net Zero commitment, with a shared vision of sustainability and innovation.

Speaking about the agreement, R. K. Singh, Union Minister for Power and New & Renewable Energy 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 the largest manufacturers of green hydrogen and green ammonia in the world.”

“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”, he added,” Hiroshi Suzuki, Ambassador of Japan to India. Mr. Suzuki further 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”, he added.

Speaking on the occasion, Ashwani Dudeja, President and Director, Acme Group 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.

“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,” stated Jun Kobayashi, Director and Managing Executive Officer, IHI Corporation.

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