In a groundbreaking move, ACME Group, a prominent renewable energy company in India, and IHI Corporation, a major Japanese heavy industry group, have entered into an offtake term sheet for the supply of green ammonia from Odisha, India to Japan.
The term sheet, signed by ACME Group’s Founder and Chairman, Shri Manoj Upadhyay, and IHI Corporation’s President and CEO, Shri Hiroshi Ide, signifies a significant step towards boosting the production and export of green ammonia.
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Strategic Investment for Sustainable Future
Under the agreement, the two companies plan to establish a 1.2 million metric tons per annum (MMTPA) Green Ammonia project in Gopalpur, Odisha, with a total investment of 5 billion USD.
The term sheet outlines the long-term supply of 0.4 MMTPA of green ammonia from the Phase-1 of the Odisha project, covering various stages of the value chain, from production to logistics and supply to Japanese customers.
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Global Implications of the Partnership
Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, highlighted the global significance of this agreement, stating that India is poised to become one of the world’s largest manufacturers of green hydrogen and green ammonia.
He emphasized the strategic importance of the partnership between India and Japan, foreseeing India’s ability to supply these green fuels to meet the substantial demands of developed countries.
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Ambassador’s Perspective on the Milestone
Ambassador of Japan to India, Mr. Hiroshi Suzuki, praised the partnership as a major milestone and expressed Japan’s unwavering support for the collaboration between the two countries in the energy sector. He acknowledged the driving force behind this collaboration—the India-Japan Clean Energy Partnership established by Prime Minister Narendra Modi and Prime Minister Fumio Kishida.
Future Prospects and Request for Collaboration
President and Director of Acme Group, Shri Ashwani Dudeja, outlined India’s potential to produce competitive green molecules for both export and domestic consumption. He stressed the need for support from the Indian and Odisha governments for the development of the green ammonia project at Gopalpur.
Additionally, Director and Managing Executive Officer of IHI Corporation, Shri Jun Kobayashi, affirmed that the agreement builds upon the strong relationship and alignment between the two companies in developing the market for this new generation fuel.
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Conclusion: A New Era of Sustainable Collaboration
This strategic offtake agreement and partnership symbolize the commitment of ACME and IHI to contribute to India’s National Green Hydrogen mission and Japan’s Net Zero commitment.
With a shared vision of sustainability and innovation, the collaboration is set to usher in a new era where fossil fuels and carbon are replaced by green and renewable fuels. The groundbreaking agreement is not only a significant achievement for the two companies but also a positive step towards a greener and more sustainable future for both India and Japan.
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