Leading renewable energy company ACME Group in India and Japanese integrated heavy industry group IHI Corporation have signed an offtake term sheet. The agreement, signed by Manoj Upadhyay, Founder and Chairman of Acme Group, and Hiroshi Ide, President and CEO of IHI Corporation, paves the way for the supply of 0.4 million metric tons per annum (MMTPA) of green ammonia from Odisha, India, to Japan.
The signing ceremony took place in the presence of notable figures including Union Minister for Power and New & Renewable Energy R. K. Singh, New & Renewable Energy Secretary Bhupinder Singh Bhalla, and Ambassador of Japan to India Hiroshi Suzuki.
The term sheet encompasses a long-term partnership covering various aspects of the value chain, from production to logistics and supply to Japanese customers. The collaboration aims to create a market for green ammonia, specifically for applications in power generation and diverse industrial uses in Japan, with the ultimate goal of reducing overall emissions.
Minister R. K. Singh highlighted the significance of this agreement, stating that it is one of the first and largest in the world within the realm of green hydrogen and green ammonia. He emphasized the strategic importance of the partnership between India and Japan, stating that India is poised to become one of the largest manufacturers of green hydrogen and green ammonia globally.
Ambassador Hiroshi Suzuki commended the partnership, expressing the Government of Japan’s unwavering support in advancing collaboration in the energy sector between the two countries. He also urged the early signing of the Green Hydrogen and Green Ammonia Joint Declaration of Intent involving the Ministry of Economy, Trade and Industry of Japan and the Ministry of New & Renewable Energy of India.
Ashwani Dudeja, President and Director of Acme Group, emphasized India’s potential to develop renewable resources and produce competitive green molecules for both export and domestic consumption. He stressed the need for support from the governments of India and Odisha in developing the green ammonia project in Gopalpur.
Jun Kobayashi, Director and Managing Executive Officer of IHI Corporation, described the agreement as building upon their earlier Memorandum of Understanding (MoU) with ACME, showcasing the strong relationship and alignment between the two companies in developing the market for this new generation fuel.
The green hydrogen and ammonia project in Gopalpur, Odisha, with a planned capacity of 1.2 MMTPA to be developed in phases, is expected to start production within 2027. Over its life cycle, the project aims to reduce global greenhouse gas emissions by 54 million tons of CO2 equivalent.
Singh hailed the agreement as a landmark occasion, symbolizing a shift towards a new world where fossil fuels and carbon are replaced by green and renewable fuels like green hydrogen and green ammonia.
