ACME Group signed an offtake term sheet with IHI Corporation for supplying 0.4 MMTPA of green ammonia from Phase 1 of the Odisha project on a long-term basis.

Jan 24, 2024

ACME Group, a leading renewable energy company in India, and IHI Corporation, a Japanese integrated heavy industry group, recently signed an offtake term sheet for the supply of green ammonia from Odisha, India to Japan. The term sheet was signed by Mr. Manoj Upadhyay, Founder and Chairman of Acme Group, and Mr. Hiroshi Ide, President and CEO of IHI Corporation, in the presence of Hon’ble Minister Shri RK Singh, respected Secretary MNRE Mr. Bhupinder Singh Bhalla, and H.E. Hon’ble Ambassador of Japan to India Mr. Hiroshi Suzuki.

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The term sheet between IHI and Acme covers the supply of 0.4 MMTPA of green ammonia from Phase 1 of the Odisha project on a long-term basis. Both companies wish to partner across the value chain, starting from production to logistics, supplying to Japanese customers, and creating 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. This strategic alignment 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.

The senior management of both companies earlier visited Bhubaneswar and sought guidance and support from the Hon’ble Chief Minister of Odisha, Mr. Naveen Patnaik, and other officials of the Government of Odisha. 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; and 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.

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Speaking on the occasion, Mr. Ashwani Dudeja, President and Director, Acme Group 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 decarbonise”. 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.

Mr. Jun Kobayashi, Director and Managing Executive Officer, IHI Corporation 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”.