ACME and IHI Ink Green Ammonia Supply Deal

ACME Group, a leader in renewable energy in India, and Japan’s IHI Corporation, have signed a term sheet to supply 0.4 million metric tonnes per annum (MMTPA) of green ammonia from Odisha, India, to Japan. This agreement, a significant step towards reducing global greenhouse gas emissions, is expected to offset 54 million tons of CO2 equivalent throughout its lifecycle.

Background
Green ammonia is ammonia produced from renewable energy sources such as solar, wind, or hydro power. It is considered a clean fuel that can be used for various applications such as power generation, transportation, and fertilizers. Green ammonia has the potential to decarbonize sectors that are hard to electrify, such as shipping and aviation.

The term sheet, signed by ACME’s Founder and Chairman Manoj Upadhyay and Hiroshi Ide, President and CEO of IHI Corporation, was witnessed by key figures Minister of Power & Renewable Energy, RK Singh, Secretary MNRE Bhupinder Singh Bhalla, and the Japanese Ambassador to India Hiroshi Suzuki.

The deal marks a major development in the Gopalpur project, envisaged by ACME in Odisha, with an ambitious capacity target of 1.2 MMTPA to be implemented in phases. The first phase of production is anticipated to begin within 2027.

Benefits
The agreement builds upon the earlier MoU between ACME and IHI and represents the strong relationship and alignment between the two companies in developing the market for this new generation fuel.

The agreement also positions India as a global leader in green hydrogen and ammonia production, leveraging its abundant renewable resources and competitive costs. India has set a target of achieving 450 GW of renewable energy capacity by 2030.

The agreement also supports Japan’s goal of becoming carbon neutral by 2050 and its strategy of importing green hydrogen and ammonia from overseas. Japan has been a close friend and partner of India and this collaboration in renewable energy in pursuit of their shared vision of going green will further strengthen their partnership.