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ACME Group and IHI Corporation Forge Strategic Partnership for Green Ammonia Supply

Under this agreement, ACME and IHI are set to compete in the green ammonia market, leveraging the support and incentives provided by the Central Government of India.

January 24, 2024. By Abha Rustagi

ACME Group, a renewable energy company in India, and IHI Corporation, a Japanese integrated heavy industry group, have signed an offtake term sheet for the supply of green ammonia from Odisha, India, to Japan.

The Founder and Chairman of ACME Group, Manoj Upadhyay, and the President and CEO of IHI Corporation, Hiroshi Ide, inked the agreement in the presence of Union Minister for Power and New & Renewable Energy R.K. Singh, New & Renewable Energy Secretary Bhupinder Singh Bhalla, Ambassador of Japan to India Hiroshi Suzuki, and CMD SECI R.P. Gupta.

Under this agreement, ACME and IHI are set to compete in the green ammonia market, leveraging the support and incentives provided 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 in Gopalpur, Odisha, with a total investment of USD 5 billion for the 1.2 MMT per annum plant.

The term sheet outlines the supply of 0.4 MMTPA of green ammonia from Phase-1 of the Odisha project, emphasizing a long-term commitment. The collaboration aims to cover the entire value chain, from production to logistics and supply to Japanese customers.

This partnership seeks to create a market for green ammonia in Japan, targeting applications in power generation and various industrial uses to mitigate overall emissions.

This strategic offtake agreement signifies the commitment of both companies to strengthen the existing relationship between India and Japan. It aligns with India's National Green Hydrogen mission and Japan's Net Zero commitment, emphasizing sustainability and innovation.

Union Minister R.K. Singh highlighted the historic nature of this agreement, marking a significant milestone in the world 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,” he said.

Ambassador Hiroshi Suzuki acknowledged the major milestone represented by the term sheet, emphasizing the potential of globally competitive green hydrogen in India. “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 said.

President and Director of ACME Group, Ashwani Dudeja, highlighted India's position to develop renewable resources and produce competitive green molecules for both export and domestic consumption. He emphasized the crucial need for support from the Government of India and the Government of Odisha for the green ammonia project at Gopalpur.

Both companies' senior management had previously met with the Chief Minister of Odisha, Naveen Patnaik, and other government officials during their visit to Bhubaneswar.

The green hydrogen and ammonia project at Gopalpur, Odisha, with a planned capacity of 1.2 MMTPA to be developed in phases, is expected to commence production by 2027.

Over its life cycle, the project aims to contribute significantly to reducing global greenhouse gas emissions by 54 million tons of CO2 equivalent.

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Minister of Power and New and Renewable Energy

Bhupinder Singh Bhalla

SECI

National Green Hydrogen Mission