ACME Group signs pact with Japanese heavy industry major, IHI for the supply of green ammonia
ACME Group, a leading renewable energy company in India on Tuesday (Jan. 23) signed an offtake term sheet for the supply of green ammonia to Japanese heavy-industry manufacturer, IHI Corporation.
The terms of the agreement covers the supply of 0.4 MMTPA (million metric tons per annum) of green ammonia from Phase-1 of Odisha project in Gopalpur on a long-term basis. Both companies will partner across the value chain, starting from production to logistics, supply to the Japanese customers, and creating a market for green ammonia for use in various industrial applications in Japan to reduce the overall emissions.
The term sheet was signed by Manoj Upadhyay, Founder and Chairman, ACME Group, and Hiroshi Ide, President and CEO of IHI Corporation in the presence of Union Minister for Power and New & Renewable Energy R. K. Singh, and Ambassador of Japan to India Hiroshi Suzuki and New & Renewable Energy Secretary, Bhupinder Singh Bhalla.
This is one of the first and largest agreements in the world in the field of green hydrogen and green ammonia, said Union Minister of Power and New & Renewable Energy, S K Singh.
"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 added.
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. The first production is likely within 2027. Over its life cycle, the project is projected to help reduce global GHG emissions by 54 million tons of CO2 equivalent.
"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 decarbonize," said Ashwani Dudeja, President and Director, Acme Group.
Dudeja also emphasized the need for support from the Government of India and the Government of Odisha in developing the green ammonia project at Gopalpur.
The latest deal is of strategic importance not only for strengthening the partnership between India and Japan, but it goes to show India can supply green ammonia and green hydrogen at a competitive rate and help countries meet their requirement for green ammonia and green hydrogen.