ACME Group and IHI Corporation’s green ammonia joint venture 405,000 tonnes per annum (TPA) project being established in Gopalpur, Odisha has been certified under Japan’s price gap support program 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.

The grant has been given under Contract for Difference (CfD) Subsidy, a key pillar of Japan’s long-term hydrogen strategy. 

According to Japan government estimates the value of the Grant under CfD Subsidy to ACME - IHI JV project is reported to be US$ 3 billion. 

Japan will provide price support for 228,000 TPA 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.

Additionally, 1,77,000 TPA of the Gopalpur project’s capacity has also been earmarked under Japan’s Long-Term Decarbonized Power Source Auction (LTDA), to further underpin project assurances for the JV to supply decarbonized fuel into Japan’s power sector over a long-term horizon.

The ACME – IHI Green Ammonia JV project is being 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.

Anil Taparia, CEO, ACME Green Molecules Business said, “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 decarbonization framework,” he added. 

ACME Group has already started another Green Ammonia project in Paradip, Odisha with a production capacity of 800,000 TPA to be commissioned by 2029. It has signed a Green Ammonia Purchase Agreement (GAPA) with Solar Energy Corporation of India (SECI) for 370,000 TPA, creating a domestic offtake base. 

A further 83,000 TPA has now 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, the company said.