From India to Japan: ACME and IHI Secure Green Ammonia Supply
Indian Renewable Energy company – ACME and Japanese heavy industry major IHI sign one of the largest pacts to supply green ammonia from India to Japan totaling an investment of 5 billion USD.
“India is going to emerge as one of the largest manufacturers of green hydrogen and green ammonia in the world: Union Power and New & Renewable Energy Minister R. K. Singh”
ACME Group, a leading renewable energy company in India, and IHI Corporation, a Japanese integrated heavy industry group, signed an offtake term sheet for the supply of green ammonia from Odisha (India) to Japan.
The term sheet was signed by Founder and Chairman of Acme Group, Shri Manoj Upadhyay and President and CEO of IHI Corporation, Shri Hiroshi Ide, in the presence of Union Minister for Power and New & Renewable Energy Shri R. K. Singh; New & Renewable Energy Secretary Shri Bhupinder Singh Bhalla, Ambassador of Japan to India Mr Hiroshi Suzuki and CMD SECI Shri R. P. Gupta.
Under this contract, ACME and IHI plan to contend with the relatively cheaper but less environment-friendly blue ammonia supply with the active support and incentives offered by the Central Government of India under the National Green Hydrogen Mission (NGHM) and the State Government of Odisha.
The total investment for a 1.2 MMT plant per year will be 5 billion USD
The Green Ammonia produced at ACME’s 1.2 MMTPA Green Ammonia project is developed at Gopalpur, Odisha.
The memorandum of understanding between IHI and ACME outlines the supply of 0.4 MMTPA (million metric tons per annum) of green ammonia from Phase-1 of the Odisha project at Gopalpur on a long-term basis.
Both parties aim to collaborate in production, logistics and supply to the Japanese market and create the demand for green ammonia in power generation and a wide range of industrial uses in Japan to decrease overall emissions.
With this strategic offtake agreement and partnership, both companies are reiterating their commitment to build a solid relationship between the two countries, therefore, to also contribute to not only India’s National Green Hydrogen mission but also Japan’s net zero commitment, through a shared vision of sustainability and innovation.
One of the first and largest agreements in the world in the area of green hydrogen and green ammonia
During his speech, the Union Minister of Power and New & Renewable Energy R.K. Singh emphasised that this was one of the first and largest agreements in the world in the area of green hydrogen and green ammonia. We value our strong association with Japan. This alliance in going green, using green hydrogen and green ammonia, will reinforce our ties.
India’s cost of making green hydrogen and green ammonia is already among the cheapest in the world. We will become a leader in global green hydrogen and green ammonia production.
The Minister highlighted the strategic role of the collaboration between India and Japan. Our partnership with Japan is strategic, gaining momentum shortly.
Japan and other developed nations need green hydrogen and green ammonia which India will be able to supply at the most competitive prices.
Byline: Vidhathri Matety
