India’s ACME Group and Japan’s IHI Corporation have signed an offtake term sheet for the supply of green ammonia from India to Japan.
The term sheet covers the supply of 0.4 MMTPA of green ammonia from Phase-1 of the Odisha project on a long-term basis, ACME said, noting that 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.
“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,” ACME stated.
To note, the green hydrogen and ammonia project in Odisha is being developed by ACME, with a planned capacity of 1.2 MMTPA to be developed in phases, and the first production is expected within 2027.
According to ACME, over its life cycle, the project will help reduce global GHG emissions by 54 million tons of CO2 equivalent.
Ashwani Dudeja, President and Director of Acme Group, said that India is well positioned to develop renewable resources and produce competitive green molecules for export as well as domestic consumption in applications which are otherwise difficult to decarbonize, emphasizing the need for support from the governments of India and Odisha in developing the green ammonia project.
Jun Kobayashi, Director and Managing Executive Officer of IHI Corporation, commented: “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.”
To remind, the two parties signed a memorandum of understanding (MoU) to study and investigate the feasibility of producing and utilizing green ammonia derived from renewable energy at the beginning of 2023.