ACME Group said on Tuesday that Japan’s IHI Corporation has signed an offtake term sheet with the company for supply of green ammonia from Odisha to Japan.

The term sheet was signed by ACME founder and chairman Manoj Upadhyay and IHI Corporation President and CEO Hiroshi Ide in the presence of Power and New & Renewable Energy Minister RK Singh.

Earlier, the senior management of the Japanese integrated heavy industry group and ACME visited Bhubaneswar and sought the guidance and support from Odisha Chief Minister Naveen Patnaik.

“The green hydrogen and ammonia project at Gopalpur (Odisha) is being developed by ACME with a planned capacity of 1.2 million tonnes per annum (MTPA) to be developed in phases; and the first production likely within 2027,” ACME Group said.

Over its life cycle, the project will help reduce global greenhouse gas (GHG) emissions by 54 million tonnes of CO2 equivalent, it added.

The term sheet between IHI and ACME covers the supply of 0.4 MTPA of green ammonia from Phase-1 of the 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.

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 Group President and Director Ashwani Dudeja said that 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 emphasised on the need for support from the Government of India and Odisha in developing the green ammonia project at Gopalpur.

“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,” IHI Corporation Director and Managing Executive Officer Jun Kobayashi said.