ACME Group, a renewable energy company in India, and IHI Corp., a Japanese integrated heavy industry group, have announced the signing of an offtake term sheet for the supply of green ammonia from Odisha, India, to Japan.
The pact covers the supply of 0.4 mmtpa (million metric tons per annum) of green ammonia from Phase-1 of Acme’s Odisha project in Gopalpur on a long-term basis.
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. The first production is 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 for the supply of green ammonia from the project was signed by Acme Group founder and chairman, Manoj Upadhyay, and IHI Corp. president and CEO, Hiroshi Ide, in the presence of India’s union minister for power and new & renewable energy R.K. Singh, new & renewable energy secretary Bhupinder Singh Bhalla, and Japan’s ambassador to India Hiroshi Suzuki.
Acme and IHI Corp. wish to partner across the value chain, starting from production to logistics, supply to the Japanese customers, and to create a 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.
Speaking about the agreement, the Union Minister for Power and New & Renewable Energy R.K. Singh 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 our partnership. India’s cost of making green hydrogen and green ammonia is already among the most competitive in the world. We are going to emerge as one of the largest manufacturers of green hydrogen and green ammonia in the world.”
The Minister underlined the strategic importance of the partnership between India and Japan. “Our partnership with Japan is strategic; it will grow stronger. Japan and other developed countries have huge requirements for green hydrogen and green ammonia, which India shall be able to supply at most competitive rates.”
Ambassador of Japan to India Hiroshi Suzuki said the partnership between Acme and IHI will bring remarkable success, given the potential of globally competitive green hydrogen in India… India-Japan Clean Energy Partnership, established by Prime Minister Narendra Modi and Prime Minister Fumio Kishida, has been driving the cooperation between the two countries.
The Ambassador requested the union power & NRE minister for early signing of green hydrogen and green ammonia joint declaration of intent (JDI) involving the Ministry of Economy, Trade and Industry, Government of Japan, and Ministry of New & Renewable Energy (MNRE) Government of India.
Speaking on the occasion, Acme Group president and director, Ashwani Dudeja 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 decarbonize”. He also emphasized the need for support from the Government of India and the Government of Odisha in developing the green ammonia project at Gopalpur.
IHI director and managing executive officer, Jun Kobayashi 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”.
ACME Group is one of the largest private-sector renewable power producers in India with a renewable energy portfolio of more than 5 GW of projects under operation and various stages of implementation. In 2021, Acme built what is perhaps the world’s first green ammonia plant in Bikaner, Rajasthan. ACME is developing several green hydrogen and ammonia projects in India, Oman, and USA with an aim to have a cumulative portfolio of 10 mmtpa of green ammonia or equivalent hydrogen/derivatives by 2032.
Acme is working with many potential customers in India to supply green hydrogen and ammonia. It has a global footprint with offices and representatives in Japan, Middle East, Europe and USA for the marketing and supply of green hydrogen and its derivatives to the international markets.
IHI is a Japanese integrated heavy industry group that originated in 1853 and leveraged its shipbuilding technology to expand into onshore machinery, bridge, plant, aero-engine, and other manufacturing fields. IHI is developing technology for ammonia firing and is constructing a carbon-free fuel
ammonia supply chain to help decarbonize the economy.
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