ACME to supply 405 kTPA green ammonia to Japan’s IHI Corporation
ACME Cleantech Solutions Private Limited (ACME Group) has signed long-term offtake agreements with Japan’s IHI Corporation for green ammonia and Mitsubishi Gas Chemical Company, Inc. (MGC) for green methanol. The agreements were signed at Atal Akshay Urja Bhawan in New Delhi and mark a major export milestone under the National Green Hydrogen Mission (NGHM).
Offtake agreements
Under the agreement with IHI Corporation, ACME will supply 405,000 tonnes per annum (405 kTPA) of green ammonia. The project is supported by Japan’s Contract for Difference (CfD) scheme for low-carbon ammonia, administered by the Ministry of Economy, Trade and Industry (METI), which provides price support to Japanese buyers.
ACME has also signed a 10-year agreement with MGC to supply 100,000 tonnes per annum (100 kTPA) of green methanol from its Paradip facility. The project is designed to meet European Renewable Fuels of Non-Biological Origin (RFNBO) requirements and International Maritime Organization (IMO) standards for cleaner marine fuels, with a focus on supporting decarbonisation in the maritime sector.
National Green Hydrogen Mission
The National Green Hydrogen Mission, approved in January 2023 with an outlay of Rs 19,744 crore, aims to position India as a global hub for the production, utilisation and export of green hydrogen and its derivatives.
Under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, implemented through a competitive bidding process conducted by the Solar Energy Corporation of India (SECI), ACME has been awarded a production capacity of 370,000 tonnes per annum (370 kTPA). The company said this allocation forms the foundation for the export-oriented agreements.
Government statements
Union Minister for New and Renewable Energy and Consumer Affairs, Food and Public Distribution Pralhad Joshi said, “I welcome Japan’s decision to extend its CfD subsidy support to the ACME-IHI Green Hydrogen project. It reflects the growing global confidence in India’s green hydrogen ecosystem and our emergence as a trusted partner in the global clean energy transition. Under the leadership of Prime Minister Shri Narendra Modi ji, the National Green Hydrogen Mission is creating a strong and future-ready ecosystem. It is attracting global investments, building international partnerships, and opening new markets for Indian green hydrogen and its derivatives.”
Secretary, Ministry of New and Renewable Energy (MNRE), Santosh Kumar Sarangi said the agreements have created market linkages with Japan for green ammonia and green methanol, demonstrated the commercial maturity of India’s green hydrogen sector, and contributed to the development of international green hydrogen and green ammonia value chains.
Takehiko Matsuo, Vice Minister, METI, Government of Japan, said the agreements represent a flagship outcome of expanding India-Japan cooperation in clean energy.
Project significance
According to the government, the agreements represent one of the largest green ammonia and green methanol offtake commitments from India to Japan to date. The deals are expected to strengthen long-term demand for production capacity established under the SIGHT Programme while supporting Japan’s energy transition and energy security objectives through imports of low-carbon fuels from India.
The agreements were signed in the presence of senior officials from MNRE, representatives of the Government of Japan, including METI, and leadership from ACME Group, IHI Corporation and MGC.
Photo credit: PIB
