Minister says green energy will further strengthen Indian-Japanese partnership
Japan’s IHI Corp and ACME Group, a leading renewable energy company in India, have signed an offtake term sheet for supply of green ammonia from Odisha to the Japanese market from a US$5 billion plant being built for first production within 2027.
The 1.2 MMTPA green hydrogen and ammonia project at Gopalpur is being developed by ACME in phases.
Starting first production within 2027, the project will help reduce global GHG emissions by 54 million tons of CO2 equivalent over its life-cycle.
The term sheet was signed by President and CEO of IHI Corporation, Hiroshi Ide, and Founder and Chairman of Acme Group, Manoj Upadhyay, in the presence of Minister for Power and New & Renewable Energy R. K. Singh, New & Renewable Energy Secretary Bhupinder Singh Bhalla, Ambassador of Japan to India Hiroshi Suzuki and CMD SECI R. P. Gupta (see picture).
Under this agreement, ACME and IHI plan to compete with the relatively cheaper but less environment-friendly blue ammonia supply with the active support and incentives being offered by the Indian Government under National Green Hydrogen Mission (NGHM) and Odisha State Government.
The Green Ammonia will be produced at ACME’s 1.2 MMTPA Green Ammonia project being developed at Gopalpur in Odisha.
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 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 offtake agreement and partnership 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.
“Japan has been a close friend and partner of India. This collaboration in renewable energy in going green will further strengthen our partnership,” Minister R. K. Singh said at the 23 Jan agreement signing ceremony.
“This is one of the first and largest agreements in the world in the field of green hydrogen and green ammonia.
“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.”
The Minister underlined the strategic importance of the partnership between India and Japan. “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.”
Singh said that the agreement marks a landmark occasion, ushering in a new world. “This is a new world where we replace fossil fuels and carbon with green and renewable fuels such as green hydrogen and green ammonia. I congratulate both Acme and IHI for this partnership. May the partnership between Japan and India become bigger and stronger in the times to come.”
“The partnership between Acme and IHI will bring remarkable success, given the potential of globally competitive green hydrogen in India,” added Ambassador Suzuki at the signing of the term sheet, calling it a major milestone.
“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 that 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. “I express the Government of Japan’s unwavering support in taking forward the collaboration between India and Japan in the energy sector,” he underscored.
Ambassador Hiroshi Suzuki has requested the Minister R K Singh for early signing of Green Hydrogen and Green Ammonia Joint Declaration of Intent (JDI) involving Japan’s Ministry of Economy, Trade and Industry, and India’s Ministry of New & Renewable Energy (MNRE).
“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,” said President and Director, Acme Group, Ashwani Dudeja.
He also emphasised the need for support from the Government of India and Government of Odisha in developing the green ammonia project at Gopalpur.
Director and Managing Executive Officer, IHI Corporation, Jun Kobayashi, added, “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.” Fiinews.com
