ACME Group, a renewable energy company, and IHI Corporation, a Japan-based integrated heavy industry group, have inked an offtake term sheet for the supply of green ammonia from India to Japan.

The agreement is aimed at contributing to India’s National Green Hydrogen Mission (NGHM) and Japan’s net-zero commitment.

The green ammonia supply will originate from ACME’s 1.2 million metric tons per annum (MMTPA) green ammonia project situated in Gopalpur, Odisha. ACME will supply 0.4 MMTPA of green ammonia from Phase I of the project on a long-term basis.

The first production is expected by 2027. Over its life cycle, the project aims to reduce global greenhouse gas emissions by 54 million tons of CO2 equivalent.

With a total investment of $5 billion for the ammonia plant, ACME and IHI plan to compete with the more conventional yet less environmentally friendly blue ammonia.

The collaboration will extend beyond supply, encompassing the entire value chain, from production to logistics, with a focus on creating a robust market for green ammonia in Japan.

Union Minister for Power and New & Renewable Energy R. K. Singh, who was present at the signing of the term sheet, emphasized that India is poised to become one of the largest manufacturers of these eco-friendly fuels globally, with competitive rates.

Ambassador of Japan to India, Hiroshi Suzuki, highlighted the India-Japan Clean Energy Partnership, as a driving force behind this cooperation.

Ashwani Dudeja, president and director of ACME Group, emphasized India’s favorable position in developing renewable resources and producing competitive green molecules for both export and domestic consumption.

ACME Group is an independent power producer with over 5 GW of renewable energy capacity. The company said it envisions a portfolio of around 10 MMTPA of green ammonia or equivalent hydrogen/derivatives by 2032.

Recently, the Japan Bank for International Cooperation and the Government of India (GoI) signed an agreement to establish a $600 million India-Japan Fund to address climate and environmental challenges.