ACME Secures Deal to Provide Green Ammonia to Japan's IHI Corporation

ACME Group announced on Tuesday that Japan's IHI Corporation has entered into an offtake term sheet with the company to secure the supply of green ammonia from Odisha, India, to Japan. The agreement was formalized through the signing of the term sheet by ACME founder and chairman Manoj Upadhyay and IHI Corporation President and CEO Hiroshi Ide, with the presence of India's Power and New & Renewable Energy Minister RK Singh.

The collaboration between ACME and IHI is part of the green hydrogen and ammonia project situated in Gopalpur, Odisha, with a planned capacity of 1.2 million tonnes per annum (MTPA) to be developed in phases. The first production is anticipated to commence by 2027. During their visit to Bhubaneswar, the senior management teams of both companies sought guidance and support from Odisha Chief Minister Naveen Patnaik.

ACME Group highlighted that the project at Gopalpur is expected to contribute significantly to reducing global greenhouse gas (GHG) emissions by 54 million tonnes of CO2 equivalent over its life cycle. The term sheet specifically outlines the supply of 0.4 MTPA of green ammonia from Phase-1 of the Odisha project on a long-term basis.

The collaboration between IHI and ACME extends across the entire value chain, encompassing production, logistics, and supply to Japanese customers. The goal is to establish a market for green ammonia, intended for use in power generation and various industrial applications in Japan, contributing to an overall reduction in emissions.

The strategic alignment between the two companies reflects their commitment to strengthening the existing relationship between India and Japan. It also aligns with India's National Green Hydrogen mission and Japan's Net Zero commitment, showcasing a shared vision of sustainability and innovation.

ACME Group President and Director Ashwani Dudeja underscored India's advantageous position to harness renewable resources and produce competitive green molecules for both domestic consumption and export. He emphasized the crucial role of support from the Government of India and the state of Odisha in developing the green ammonia project at Gopalpur.

IHI Corporation Director and Managing Executive Officer Jun Kobayashi expressed confidence in the collaboration, stating that the agreement builds upon their earlier Memorandum of Understanding (MoU) with ACME and signifies a strong relationship between the two companies in developing the market for this next-generation fuel.

HBL