ACME Group plans $1.4 bn green methanol plant in Odisha, inks agreement

ACME Green Hydrogen and Ammonia Business Unit Chief Operating Officer (COO) Anil Taparia said in an interview that the agreement for the greenfield plant has been signed with Industrial Promotion and Investment Company of Odisha Ltd (IPICOL).

ACME is in talks with several global shipping companies to sign offtake agreements with the green methanol project to be commissioned in 2029-30.

“We do multiple installations He said that they will implement green hydrogen and ammonia projects for both domestic and export purposes around Taparia, Paradip and Gopalpur.

ACME currently operates IHI Corp., based in Gopalpur, Odisha, Japan. There is a green ammonia plant operated through a joint venture with . The greenfield methanol project will be adjacent to another project for 2,200 tonnes of green ammonia; The company is based in Paradip in the state. ₹19,000 crore National Green Hydrogen Mission.

This comes at a time when global marine fuel standards are tightening, including the European Union’s FuelEU Marine Directive and the International Maritime Organization’s (IMO) targets, increasing demand for green methanol, a derivative of green hydrogen. This attracted investments India’s green hydrogen space includes AM Green, Adani Group, Reliance Industries Ltd, ReNew and Indian Oil Corp. and NTPC Green Ltd.

The European Union’s FuelEU Shipping Directive and the International Maritime Organization (IMO) call for net-zero greenhouse gas (GHG) emissions in global shipping by 2050.

sustainable fuels

Green methanol, green ammonia and green hydrogen are considered sustainable green fuel options in the marine industry. According to the Energy Research Institute (Teri), green ammonia is produced from green hydrogen and nitrogen through the Haber-Bosch process, and green methanol is made by combining green hydrogen with captured carbon dioxide.

By 2030, the global green methanol market is expected to be driven primarily by marine decarbonization; Maritime demand is estimated to be 5-10 million tons annually. According to industry estimates, Europe is expected to account for around 40-50% of import demand, with additional interest from hubs in Singapore, Japan and South Korea.

Given global demand forecasts, the government aims to develop India as an export hub for green hydrogen and its derivatives, including green methanol, supported by large-scale renewable capacity, port access and policy support under the National Green Hydrogen Mission.

Taparia added that abundant availability of biogenic feedstock, supportive industrial policies and a low-cost source of green power have created a robust ecosystem for green methanol production in Odisha at globally competitive costs. He said that the project will be financed with debt and internal accruals, and that increasing the equity fund is also on the agenda, but no final decision has been taken yet.

“Negotiations are ongoing with many global financial institutions. IPICOL will largely play the role of facilitator in the project,” he said.

ACME Group has already set up a small-scale green ammonia project in Bikaner, Rajasthan. It is also developing a 0.1 million metric tonnes per annum (MMTPA) green ammonia project in Duqm, Oman. It aims to create a portfolio of 10 MMTPA of green ammonia or equivalent green hydrogen by 2032.

Demand for green fuels

ACME has received six letters of award (LoAs) from Solar Energy Corporation of India Ltd (SECI) under the first tranche of its green ammonia supply scheme to India’s fertilizer sector. Under the LoAs, ACME Group will supply 370,000 tonnes of green ammonia annually for 10 years to some of India’s largest chemical and fertilizer companies.

The maritime sector is expected to be the primary sector requiring green methanol. Under the National Green Hydrogen Mission, the Shipping Corporation of India is working to retrofit several ships to run on green methanol, green hydrogen or other derivatives by 2027.

According to Teri’s November 2024 report on green hydrogen, the choice between fuel cells and internal combustion engines depends on the ship type and operational requirements. Two broad categories of shipping, short-haul and long-haul, require different technological solutions. “Short-distance shipping is carried out on routes between nearby ports. Relatively short distances enable the use of cleaner energy, electric propulsion and biogas,” the report said.

The report stated that hydrogen-powered engines for shipping are also under development, and that green ammonia and green methanol are currently more advantageous options as they can provide the energy required for long routes.