ACME Group and IHI Corporation’s green ammonia Joint Venture (JV) project of 405 000 tpy in Gopalpur, Odisha, India, has been certified under Japan’s price gap support programme by the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism pursuant to the Hydrogen Society Promotion Act.
Grant under contract for difference (CfD) subsidy
The Green Ammonia JV project being developed in Gopalpur, Odisha has been selected by METI under the Government of Japan’s clean hydrogen contract for difference (CfD) subsidy programme, a key pillar of Japan’s long term hydrogen strategy. Japan will provide price support for 228 000 tpy of clean ammonia supply capacity from the Gopalpur project, helping bridge the cost gap between green and conventional ammonia for various Japanese off-takers for 25-years period starting September 2030 for delivery of clean ammonia to Japan.
Supply under Long Term Decarbonised Power Source Auction
Additionally, 177 000 tpy of the Gopalpur project’s capacity has also been earmarked under Japan’s Long Term Decarbonised Power Source Auction (LTDA), to further underpin project assurances for the JV to supply decarbonised fuel into Japan’s power sector over a long term horizon.
Commercial operations date
The ACME – IHI Green Ammonia JV project is intended to be developed as a world scale green ammonia export hub powered entirely by renewable energy. It is being established at Tata Steel SEZ Industrial Park at Gopalpur district of Odisha and is expected to be commissioned by July 2030.
According to Anil Taparia, CEO of ACME Green Molecules Business: “The selection of our Gopalpur joint venture under Japan’s clean hydrogen CfD scheme, together with LTDA support for capacities at Gopalpur and Paradip, is an important milestone for ACME. These approvals provide long term revenue visibility across our green ammonia portfolio and materially strengthen the bankability of our projects while supporting the objectives of India’s National Green Hydrogen Mission and Japan’s decarbonisation framework.”
ACME Group has already started another Green Ammonia project in Paradip, Odisha with a production capacity of 800 000 tpy to be commissioned by 2029. ACME has signed a Green Ammonia Purchase Agreement (GAPA) with Solar Energy Corporation of India (SECI) for 370 000 tpy, creating a strong domestic offtake base. In a significant development, a further 83 000 tpy has been awarded under the LTDA programme for supplies to Japan. With these milestones, a substantial portion of Paradip’s output is now underpinned by long term, contracted demand across both Indian and international markets.
These outcomes mark a significant step towards deepening India–Japan collaboration on energy transition and reinforces ACME’s position as the leading Indian company in Japan’s emerging clean hydrogen and green ammonia import ecosystem.