Indian Renewable Energy company - ACME and Japanese heavy industry major IHI Corporation sign one of the largest pact to supply Green Ammonia from India to Japan
ACME Group, a leading renewable energy company in India, and IHI Corporation, a Japanese integrated heavy industry group, signed an offtake term sheet for supply of green ammonia from Odisha, India to Japan. The term sheet was signed by Founder and Chairman of Acme Group, Manoj Upadhyay and President and CEO of IHI Corporation, Hiroshi Ide, in the presence of Union Minister for Power and New & Renewable Energy R. K. Singh.
The two companies will set up a green ammonia plant in Gopalpur, Odisha at an investment of Rs 60,000 crore.
The term sheet between IHI and ACME covers the supply of 0.4 MMTPA (million metric tons per annum) of green ammonia from Phase-1 of Odisha project in Gopalpur on a long-term basis.
Both companies wish to partner across the value chain, starting from production to logistics, supply to the Japanese customers and to create the 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 Shri 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.”
Speaking about the strategic partnership, Ambassador of Japan to India Mr. Hiroshi Suzuki said that the signing of the term sheet marks a major milestone. “The partnership between Acme and IHI will bring remarkable success, given the potential of globally competitive green hydrogen in India. I express the Government of Japan’s unwavering support in taking forward the collaboration between India and Japan in the energy sector”, he added.
The Ambassador said that 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. “I express the Government of Japan’s unwavering support in taking forward the collaboration between India and Japan in the energy sector”, he added.
The Ambassador also requested the Union Power & NRE mimister 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.
Japanese company IHI Corporation will be supporting the project to set up the 1.2 million tonne plant that is expected to require $5 billion of total investment.
Director and Managing Executive Officer, IHI Corporation, Shri 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”.
Last month, Adani Group also announced that the group had partnered with IHI Corporation along with an another Japanese major, Kowa company, to study & explore ammonia co-firing at the Adani Power Mundra plant. The studies aim at initially de-carbonizing Adani’s coal fired plants but with a larger objective to implement the technology in other coal-fired plants across India.
In October last year, AMG Green, a company founded by Hyderabad-based renewables group, Geenko, has secured $1.75 billion from Gentari of Malaysia's Petronas, and Singapore’s GIC sovereign wealth fund, to develop one of world's largest green ammonia platform. Prior to that, in April, Avaada Group today announced fundraise of $1.07 billion for its green hydrogen and green ammonia ventures in India.
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