ACME Green Molecules Business, Mitsubishi Gas Chemical Sign USD 1 Billion Green Methanol Supply Deal

ACME Green Molecules Business, part of the ACME Group, has signed a binding long-term purchase and sale agreement with Japan's Mitsubishi Gas Chemical Company, Inc. (MGC) to supply 100,000 tonnes of green methanol annually in a deal valued at around USD 1 billion, marking India's first global collaboration for RFNBO-compliant green marine fuel.

The agreement is expected to strengthen India's position in the emerging green shipping fuel market while supporting global decarbonisation efforts in the marine sector.

The green methanol will be produced at ACME Group's upcoming facility in Paradip, Odisha. The fuel is designed to comply with the European Union's Renewable Fuels of Non-Biological Origin (RFNBO) standards and is expected to meet future regulations of the International Maritime Organization (IMO).

Green methanol is increasingly being adopted as a low-carbon alternative to conventional marine fuels such as Heavy Fuel Oil (HFO), Very Low Sulphur Fuel Oil (VLSFO) and Marine Gas Oil (MGO). It offers significantly lower lifecycle carbon emissions while remaining compatible with existing shipping and port infrastructure with only limited modifications.

"This agreement marks an important milestone in ACME Group's journey to build a globally competitive green methanol business and accelerate the transition to sustainable fuels and chemicals in the marine and aviation sectors," said Anil Taparia, Chief Executive Officer of ACME Green Molecules Business.

He added that the partnership with Mitsubishi Gas Chemical would help accelerate the commercialisation of green methanol at scale.

Hideaki Akase, Managing Executive Officer, Green Energy and Chemicals Business Sector at Mitsubishi Gas Chemical, said that the agreement would enable the company to secure ultra-low carbon green methanol compliant with European regulations and future IMO standards.

He said that the fuel would be competitively priced for the emerging green market and has the potential to transform global green chemical and energy markets. Akase added that the two companies would continue collaborating to advance the transition towards a more sustainable society.

The Paradip green methanol project represents ACME Group's third major investment in Odisha. The company is already developing a 405,000 tonnes per annum (TPA) green ammonia plant in Gopalpur through a joint venture with Japan's IHI Corporation and an 800,000 TPA green ammonia facility in Paradip, backed by a Green Ammonia Purchase Agreement with the Solar Energy Corporation of India (SECI) under the National Green Hydrogen Mission's SIGHT Scheme.

According to the company, its investments in Odisha are intended to create a long-term green energy manufacturing hub catering to domestic and international markets while generating employment and supporting the growth of ancillary industries.

ACME Group said that its Green Molecules Business is expanding its global footprint through projects in India and Oman and has secured long-term offtake partnerships with international and domestic customers, including Yara International, IHI Corporation, IFFCO, Paradeep Phosphates, Coromandel International and Indorama India. The company aims to supply green hydrogen derivatives for sectors such as shipping, fertilizers, refining, chemicals and other hard-to-abate industries as they pursue net-zero emissions targets.