ACME Signs $1B Green Methanol Deal With Japan's Mitsubishi Gas Chemical

Hideaki Akase, managing executive officer at Mitsubishi Gas Chemical's green energy and chemicals business sector, said ACME has "continuously created new frameworks in new business fields" and is "now trying to navigate through the challenge in green methanol field." He added that the company is "honored to have concluded a long-term contract to purchase this green methanol and contribute to overcome those challenges."

ACME is developing the plant in partnership with Industrial Promotion and Investment Corporation of Odisha Ltd. In January, Mint reported that ACME Group had signed an agreement to build a $1.4 billion green methanol plant in Odisha with an annual production capacity of 200,000 tonnes to fuel ships.

On Thursday, the Union ministry of new and renewable energy announced that, under the National Green Hydrogen Mission, ACME Group had secured long-term offtake agreements with leading Japanese companies. IHI Corporation signed for green ammonia, and Mitsubishi Gas Chemical signed for green methanol.

On June 30, ACME Group and Japan's IHI Corp. secured $3 billion in price support from the Japanese government for their green hydrogen joint venture in Odisha. That support enables customers in Japan to buy green hydrogen at a cost comparable to grey hydrogen.

ACME's Gopalpur green hydrogen project, with an annual capacity of 405,000 tonnes, will supply green ammonia to IHI Corp. and other Japanese customers including Mitsubishi Gas Chemical Co., Hokkaido Electric Power Co., Nippon Beet Sugar Manufacturing Co., Kobelco Power Kobe Inc., Sumitomo Chemical Co., and UBE Corp.