ACME Group and IHI Corporation Forge Historic Partnership for Green Ammonia Supply from India to Japan

In a groundbreaking collaboration, ACME Group, a leading renewable energy company in India, and Japanese integrated heavy industry group IHI Corporation, have inked an offtake term sheet for the supply of green ammonia from Odisha, India to Japan. The agreement, signed by ACME Group’s Founder and Chairman, Shri Manoj Upadhyay, and IHI Corporation’s President and CEO, Shri Hiroshi Ide, aims to tap into the burgeoning market for green ammonia, positioning themselves as competitors to the prevalent but less environmentally friendly blue ammonia. The move is bolstered by robust support and incentives from 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 ambitious 1.2 million metric tons per annum (MMTPA) Green Ammonia project in Gopalpur, Odisha, with a substantial investment of $5 billion. The term sheet specifies the supply of 0.4 MMTPA of green ammonia from the Phase-1 of the Odisha project to Japan on a long-term basis. ACME and IHI plan to collaborate across the entire value chain, encompassing production, logistics, and supply to Japanese customers, fostering a market for green ammonia in various applications, including power generation and industrial uses, with a view to reducing overall emissions.

The strategic partnership aligns with the vision of both nations, contributing to India’s National Green Hydrogen mission and Japan’s Net Zero commitment. Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, lauded the agreement as one of the world’s first and largest in the realm of green hydrogen and green ammonia. He highlighted India’s competitiveness in the production of these green fuels and envisioned the country emerging as a major global supplier.

Ambassador of Japan to India, Mr. Hiroshi Suzuki, expressed strong support for the collaboration, emphasizing the potential of globally competitive green hydrogen in India. He urged the early signing of a Green Hydrogen and Green Ammonia Joint Declaration of Intent between the two governments.

The collaboration, underpinned by the India-Japan Clean Energy Partnership, is poised to drive success in the energy sector, marking a significant milestone in the global shift towards sustainable and renewable fuels.