Covering 505 kTPA of green fuels, the agreements require ACME Group to supply IHI Corporation with 405 kTPA of green ammonia and Mitsubishi Gas Chemical with 100 kTPA of green methanol. The methanol agreement has a 10-year term and will source production from ACME's Paradip facility.
Snapshot
Supplier - ACME Group signed the two green fuel offtake agreements.
Green ammonia - ACME will supply IHI Corporation with 405 kTPA.
Green methanol - ACME will supply Mitsubishi Gas Chemical with 100 kTPA.
Contract term - The green methanol agreement has a 10-year duration.
Production site - The green methanol will be supplied from ACME's Paradip facility.
Program capacity - ACME was awarded 370 kTPA under the SIGHT Programme.
Price support - Japan's CfD scheme supports the green ammonia arrangement.
Fuel requirements - The methanol project is designed to meet RFNBO requirements and IMO standards.
ACME Cleantech Solutions Private Limited, an India-based green hydrogen and renewable energy company, signed long-term offtake agreements with IHI Corporation and Mitsubishi Gas Chemical Company, Inc. The agreements cover green ammonia and green methanol supplies to Japan and were formally signed at Atal Akshay Urja Bhawan in New Delhi.
Under its agreement with IHI Corporation, ACME will supply 405 kTPA of green ammonia. The arrangement receives price support through Japan's Contract for Difference scheme for low-carbon ammonia, which is administered by the Ministry of Economy, Trade and Industry. The mechanism provides price support to Japanese offtakers for eligible imports.
ACME separately signed a 10-year agreement with Mitsubishi Gas Chemical for 100 kTPA of green methanol. The fuel will be supplied from ACME's Paradip facility. The project is intended for applications including the maritime sector and is designed to meet European Renewable Fuels of Non-Biological Origin requirements and International Maritime Organization standards for cleaner marine fuels.
The agreements are linked to ACME's 370 kTPA production-capacity award under the Strategic Interventions for Green Hydrogen Transition Programme. The programme provides financial support through bidding conducted by the Solar Energy Corporation of India. It forms part of the National Green Hydrogen Mission, which was approved in January 2023 with an INR 19,744 crore outlay.
Union Minister Pralhad Joshi said Japan's CfD support would assist the ACME-IHI project and expand international market access for Indian green hydrogen derivatives. Ministry Secretary Santosh Kumar Sarangi said the agreements had created market linkages with Japan and contributed to international green hydrogen and green ammonia value chains. Takehiko Matsuo, Japan's Vice Minister of Economy, Trade and Industry, described the agreements as an outcome of India-Japan clean-energy cooperation.
ACME presented project overviews before the agreements were signed in the presence of Indian and Japanese officials and representatives from ACME, IHI Corporation, and Mitsubishi Gas Chemical. The Ministry described the commitments as among the largest green ammonia and methanol offtake arrangements from India to Japan to date.