India marked a major milestone in its clean energy ambitions under the National Green Hydrogen Mission (NGHM) as ACME Cleantech Solutions Pvt. Ltd. (ACME Group) signed long-term export agreements with Japanese companies for the supply of green ammonia and green methanol, strengthening the country’s position as a global hub for green hydrogen and its derivatives.
Under the agreements signed in New Delhi, ACME will supply 4,05,000 tonnes per annum (405 kTPA) of green ammonia to IHI Corporation and 1,00,000 tonnes per annum (100 kTPA) of green methanol to Mitsubishi Gas Chemical Company, Inc. (MGC) over a 10-year period from its Paradip facility. The green ammonia project is backed by Japan’s Contract for Difference (CfD) scheme, administered by the Ministry of Economy, Trade and Industry (METI), which provides price support to Japanese buyers. The green methanol project is designed to meet European Renewable Fuels of Non-Biological Origin (RFNBO) requirements and International Maritime Organization (IMO) standards for cleaner marine fuels.
The agreements were signed under the National Green Hydrogen Mission, approved in January 2023 with an outlay of ₹19,744 crore to establish India as a leading producer, user and exporter of green hydrogen. ACME has already been awarded an annual production capacity of 3,70,000 tonnes under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, which provides financial support through a competitive bidding process conducted by the Solar Energy Corporation of India (SECI).
Union Minister for New and Renewable Energy Pralhad Joshi said Japan’s decision to extend CfD subsidy support to the ACME-IHI project reflects growing global confidence in India’s green hydrogen ecosystem. He said the National Green Hydrogen Mission, under the leadership of Prime Minister Narendra Modi, is attracting global investments, fostering international partnerships and opening new markets for Indian green hydrogen and its derivatives.
MNRE Secretary Santosh Kumar Sarangi said the agreements have established a strong market linkage with Japan for green ammonia and green methanol, demonstrated the commercial maturity of India’s green hydrogen sector and laid the foundation for international green hydrogen and green ammonia value chains. Japan’s Vice Minister of METI, Takehiko Matsuo, described the agreements as a flagship outcome of the deepening clean energy partnership between India and Japan.
The deals are among the largest green ammonia and green methanol offtake commitments between India and Japan so far and are expected to strengthen long-term demand for India’s green fuel production while supporting Japan’s energy transition and energy security goals.
