ACME, IHI Corp ink green ammonia supply deal from Odisha to Japan

India’s ACME Group and Japan’s IHI Corporation have 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 MNRE Minister RK Singh. As per reports, the investment in the project will go upto Rs 59,000 crore.

The term sheet between IHI and ACME covers the supply of 0.4 MMTPA of green ammonia from Phase-1 of 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.

Speaking about the agreement, MNRE Minister 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. “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. Japan and other developed countries have huge requirements for green hydrogen and green ammonia, which India shall be able to supply at most competitive rates.”

Speaking about the strategic partnership, Ambassador of Japan to India Hiroshi Suzuki said, “I express the Government of Japan’s unwavering support in taking forward the collaboration between India and Japan in the energy sector.”

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

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.

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

The green hydrogen and ammonia project at Gopalpur, Odisha is being developed by ACME with a planned capacity of 1.2 MMTPA to be developed in phases; and the first production is likely within 2027. Over its life cycle, the project will help reduce global GHG emissions by 54 million tons of CO2 equivalent.