Green Finance: ACME Group gets Rs. 4000 Cr. for its green hydrogen project in Oman

Diversified renewable energy company, ACME Group announced it has secured a loan of Rs 4,000 crore ($40 billion) from Rural Electrification Corporation (REC) Limited, one of India's largest green infrastructure financial institutions, for its green hydrogen and green ammonia project in Oman.

The loan will be utilized for funding the first phase of green hydrogen and green ammonia project, which will be established in the Special Economic Zone (SEZ) in Duqm, Oman. In the first phase the project is expected to produce 100,000 tonnes of green ammonia annually. As part of the expansion plan, the facility will be further scaled up to produce 1.2 million tonnes per annum with approximately 3.5 GW of electrolyzer capacity, all of which will be powered by a massive 5.5 GWp of solar PV plant.

"These projects are poised to play a pivotal role in facilitating the energy transition journey and contributing significantly to achieving India's green energy targets," said Vivek Kumar Dewangan, Chairman and Managing Director, REC.

"REC has consistently been at the forefront of supporting cutting-edge technologies that not only address the challenges posed by climate change and environmental degradation but also foster a conducive investment environment. The partnership between REC and ACME Group marks a significant step towards a sustainable and greener future for the nation."

In addition to the loan for the Oman project, ACME Group also signed a Memorandum of Understanding (MoU) with REC Limited amounting over Rs 21,000 crore of loans, which will be utilized for setting up 380 MW (round-the-clock renewable power) RTC, phase 1 of Odisha and phase 1 of Tamil Nadu Green Ammonia projects and 600 MWh of pumped hydro project.

"The securing of debt for the green hydrogen and ammonia project in Oman is an important milestone. We will start the construction activities soon and build one of the most advanced technologies and create a state-of-the-art facility," said Shashi Shekhar, Vice-Chairman of ACME Group

"Going forward, we are actively exploring the establishment of round-the-clock (RTC) energy solutions, encompassing solar, wind, hydro pump storage, green hydrogen, and ammonia."

The MoU were formalized during the 14th Clean Energy Ministerial and 8th Mission Innovation meeting (CEM14/MI-8) currently being held in Goa.