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IHI Corporation, a Japanese integrated heavy industry group and ACME Group, a renewable energy company in India, signed an offtake term sheet for supply of green ammonia from Odisha, India to Japan. The term sheet was signed by Manoj Upadhyay, Founder and Chairman of Acme Group and Hiroshi Ide, President and CEO of IHI Corporation, in the presence of Minister RK Singh, Secretary MNRE Bhupinder Singh Bhalla, and Ambassador of Japan to India Hiroshi Suzuki.
The senior management of both the companies’ earlier visited Bhubaneswar and sought the guidance and support from Hon’ble Chief Minister of Odisha, Naveen Patnaik and other officials of Government of Odisha. The green hydrogen and ammonia project at Gopalpur, Odisha is being developed by ACME with a planned capacity of 1.2 MMTPA to be developed in phases; and the first production likely within 2027. Over its life cycle, the project will help reduce global GHG emissions by 54 million tons of CO2 equivalent.
The term sheet between IHI and Acme covers the supply of 0.4 MMTPA of green ammonia from Phase-1 of Odisha project 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, Union Minister R. K. Singh underlined that this is one of the first and largest agreements in the world in the field of green hydrogen and green ammonia. He commented “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.” Also, he added "Our partnership with Japan is strategic; it will grow stronger. Japan and other developed countries have huge requirements for green hydrogen and green ammonia, which India shall be able to supply at most competitive rates.”
This strategic alignment represents the dedication of both companies to build upon the existing strong relationship between the two countries and contribute to both India’s National Green Hydrogen mission as well as Japan’s Net Zero commitment, with a shared vision of sustainability and innovation.
Speaking about the strategic partnership, Ambassador 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”. "India-Japan Clean Energy Partnership, established by PM Modi and PM Kishida, has been driving the cooperation between the two countries" he added.
Speaking on the occasion, Ashwani Dudeja, President and Director, Acme Group said, “India is well positioned to develop the renewable resources and produce competitive green molecules for export as well as domestic consumption in applications which are otherwise difficult to decarbonise”. He also emphasised the need for support from the Government of India and Government of Odisha in developing the green ammonia project at Gopalpur.
Jun Kobayashi, Director and Managing Executive Officer, IHI Corporation 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”.