New Delhi, Jan 23 (IANS): ACME Group, a leading renewable energy company in India, and IHI Corporation, a Japanese integrated heavy industry group, have signed an offtake term sheet for supply of green ammonia from India to Japan.

The term sheet between IHI and Acme covers the supply of 0.4 MMTPA (million metric tons per annum) of green ammonia from Phase-1 of Odisha project in Gopalpur on a long-term basis.

Both companies plan 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 overall emissions.

The term sheet was signed by Founder and Chairman of Acme Group, Manoj Upadhyay, and President and CEO of IHI Corporation, Hiroshi Ide, in the presence of Union Minister for Power and New & Renewable Energy R.K. Singh, New & Renewable Energy Secretary Bhupinder Singh Bhalla, and Japan’s Ambassador to India Hiroshi Suzuki.

Union minister Singh said that this is one of the first and largest agreements in the world in the field of green hydrogen and green ammonia.

“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,” Singh said.

“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,” he added.

Speaking about the strategic partnership, Japan’s Ambassador to India, Hiroshi Suzuki, said, “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.”

The Ambassador said the India-Japan Clean Energy Partnership, established by Prime Minister Narendra Modi and Prime Minister Fumio Kishida, has been driving the cooperation between the two countries.

Speaking on the occasion, President and Director, Acme Group, Ashwani Dudeja, 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."

Director and Managing Executive Officer, IHI Corporation, Jun Kobayashi, 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."

The senior management of both the companies earlier visited Bhubaneswar and called on Odisha Chief Minister Naveen Patnaik and other officials of the state government.

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 is likely within 2027. Over its life cycle, the project will help reduce global GHG emissions by 54 million tons of CO2 equivalent.