01-03-2024

IHI and ACME signed pact to supply green ammonia from India to Japan

ACME Group, a leading renewable energy company in India, and IHI Corporation, a Japanese integrated heavy industry group, today signed an offtake term sheet for supply of green ammonia from Odisha, India to Japan. The term sheet was signed by Shri Manoj Upadhyay, Founder and Chairman of Acme Group and Shri Hiroshi Ide, President and CEO of IHI Corporation, in the presence of Hon’ble Minister Shri RK Singh, Respected Secretary MNRE Shri Bhupinder Singh Bhalla, and H.E. Hon’ble Ambassador of Japan to India Shri Hiroshi Suzuki.

The senior management of both the companies’ earlier visited Bhubaneswar and sought the guidance and support from Hon’ble Chief Minister of Odisha, Shri Naveen Patnaik and other officials of Government of Odisha. 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 likely within 2027. Over its life cycle, the project will help reduce global GHG emissions by 54 million tons of CO2 equivalent.

The term sheet between IHI and Acme covers the supply of 0.4 MMTPA of green ammonia from Phase-1 of Odisha project 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. This strategic alignment represents the dedication of both companies to build upon the existing strong relationship between the two countries and contribute to both India’s National Green Hydrogen mission as well as Japan’s Net Zero commitment, with a shared vision of sustainability and innovation.

Speaking on the occasion, Shri 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.

Shri 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”.