ACME and IHI sign one of the largest pacts to supply Green Ammonia from India to Japan
23rd January 2024
ACME Group, a leading renewable energy company in India, and IHI Corporation, a Japanese integrated heavy industry group, have signed an offtake term sheet for supply of green ammonia from Odisha, India to Japan
Under this agreement, ACME and IHI plan to compete with the relatively cheaper but less environment-friendly blue ammonia supply with the active support and incentives being offered by the Central Government of India under National Green Hydrogen Mission (NGHM) and State Government of Odisha
The Green Ammonia will be produced at ACME’s 1.2 MMTPA Green Ammonia project being developed at Gopalpur in the state of Odisha. The project is to be developed in phases; and the first production is likely within 2027
Total investment for 1.2 MMT per annum plant will be 5 billion USD. 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 (million metric tons per annum) of green ammonia from Phase-1 of Odisha project in Gopalpur 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 offtake agreement and partnership 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 about the agreement, the Union Minister for Power and New & Renewable Energy has said that this is one of the first and largest agreements in the world in the field of green hydrogen and green ammonia. Japan has been a close friend and partner of India. This collaboration in renewable energy in going green will further strengthen this partnership