ACME Group Secures Major Green Fuel Contracts with Japan
In a remarkable advancement for India’s green energy sector, ACME Cleantech Solutions Private Limited has secured a series of long-term offtake agreements with two prominent Japanese companies, IHI Corporation and Mitsubishi Gas Chemical Company, Inc. This announcement, made during a ceremony at Atal Akshay Urja Bhawan in New Delhi, marks a significant leap forward under the National Green Hydrogen Mission (NGHM).
The National Green Hydrogen Mission, which received government approval in January 2023 with a total investment of ₹19,744 crore, aims to establish India as a worldwide hub for the production and export of green hydrogen. The mission includes the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, which supports green hydrogen production through a transparent bidding process managed by the Solar Energy Corporation of India (SECI). ACME Group has been allocated a production capacity of 370,000 tonnes per annum (TPA) under this program, forming the core of these international agreements.
Green Ammonia and Methanol Supply Agreements
As part of its deal with IHI Corporation, ACME will supply 405,000 tonnes of green ammonia annually. This initiative is backed by Japan’s Contract for Difference (CfD) framework, which facilitates price stability for low-carbon ammonia imports, thereby guaranteeing the financial viability of this arrangement for Japanese buyers.
Additionally, ACME has inked a 10-year contract with Mitsubishi Gas Chemical to provide 100,000 tonnes of green methanol annually from its facility in Paradip. This initiative aligns with global decarbonization efforts, especially within the maritime industry, and meets stringent European standards for renewable fuels.
Statements from Key Officials
Union Minister for New & Renewable Energy, Shri Pralhad Joshi, praised this collaboration with Japan, highlighting it as a testament to India’s burgeoning confidence in the green hydrogen sector. He emphasized that, under the leadership of Prime Minister Narendra Modi, the NGHM is fostering an environment ripe for international investment and partnerships, thus enhancing India’s role in the global clean energy landscape.
In his speech, Secretary of the Ministry of New & Renewable Energy, Shri Santosh Kumar Sarangi, pointed out three main outcomes of these agreements: the establishment of market connections with Japan for green ammonia and methanol, the demonstration of the commercial viability of the Indian green hydrogen sector, and the creation of international value chains for green hydrogen and ammonia.
Strengthening India-Japan Energy Ties
Mr. Takehiko Matsuo, Vice Minister of METI, Government of Japan, also expressed enthusiasm regarding the agreements, noting that they signify a deepening of India-Japan collaboration in renewable energy.
These contracts represent one of the largest commitments for green ammonia and methanol exports from India to Japan, illustrating the maturation of India’s green hydrogen sector and reinforcing the expected long-term demand for production capacities established through the SIGHT Programme. This partnership is poised to advance Japan’s energy security and transition goals by ensuring a reliable supply of low-carbon fuels from India.
ACME Group presented detailed project overviews at the event, which concluded with the formal signing of the agreements in the presence of senior officials from the Indian Ministry of New and Renewable Energy, representatives from Japan’s METI, and executives from ACME, IHI Corporation, and Mitsubishi Gas Chemical.
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