Renewable Energy News – In a significant boost to India-Japan collaboration on clean energy, the ACME–IHI green ammonia joint venture has secured certification under Japan’s price gap support program. The 405,000 tonnes per annum (TPA) project in Gopalpur, Odisha, has been selected for Contract for Difference (CfD) subsidy support by Japan’s Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism.
This milestone underscores growing international momentum for green hydrogen derivatives as countries strive to meet ambitious decarbonization targets.
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Strategic Subsidy Unlocks Long-Term Revenue Visibility
The green ammonia JV project in Gopalpur has been approved under Japan’s clean hydrogen Contract for Difference (CfD) subsidy programme. This forms a key pillar of Japan’s long-term hydrogen strategy aimed at establishing stable supply chains for low-carbon fuels.
Under the CfD mechanism, Japan will provide price support for 228,000 TPA of clean ammonia from the Gopalpur facility. This support will bridge the cost gap between green and conventional ammonia for Japanese off-takers over a 25-year period, commencing from September 2030. The arrangement ensures delivery of clean ammonia to Japan, offering critical financial certainty to project developers while de-risking investments in emerging green fuel technologies.
Additionally, 177,000 TPA of the project’s capacity has been earmarked under Japan’s Long-Term Decarbonized Power Source Auction (LTDA). This allocation further strengthens assurances for supplying decarbonized fuel to Japan’s power sector over the long term. Together, these supports cover the full 405,000 TPA capacity of the Gopalpur project, marking a comprehensive vote of confidence from Japanese authorities.
World-Scale Export Hub Powered by Renewables
The ACME–IHI Green Ammonia JV project is being developed as a world-scale green ammonia export hub, powered entirely by renewable energy sources. It is located at the Tata Steel SEZ Industrial Park in Gopalpur, Odisha, and is expected to reach commercial operations by July 2030.
Green ammonia, produced using renewable-powered electrolysis for hydrogen and nitrogen fixation, represents a versatile zero-carbon fuel and feedstock. It holds immense potential for hard-to-abate sectors including shipping, power generation, fertilizers, and chemicals. The Gopalpur project positions India as a key exporter in the emerging global clean ammonia market while supporting Japan’s goal of diversifying its energy imports away from fossil fuels.
Executive Insights on Strategic Importance
Anil Taparia, CEO of ACME Green Molecules Business, highlighted the significance of the development: “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.”
The dual support mechanisms not only validate the technical and commercial viability of the project but also align with broader bilateral energy transition goals between India and Japan.
Progress on Paradip Project Complements Gopalpur Initiative
ACME Group has also advanced its second major green ammonia project in Paradip, Odisha, with a planned capacity of 800,000 TPA and an expected commissioning by 2029. The company has already secured a Green Ammonia Purchase Agreement (GAPA) with Solar Energy Corporation of India (SECI) for 370,000 TPA, establishing a robust domestic offtake base.
In a parallel development, an additional 83,000 TPA from the Paradip project has been awarded under Japan’s LTDA programme for supplies to Japan. These milestones mean a substantial portion of Paradip’s output is now underpinned by long-term contracted demand across both Indian and international markets.
The complementary development of Gopalpur and Paradip projects establishes Odisha as a major green ammonia production hub in India, leveraging the state’s favorable infrastructure, port access, and renewable energy potential.
Strengthening India-Japan Energy Partnership
These outcomes represent a significant step towards deepening India–Japan collaboration on energy transition. They reinforce ACME’s position as a leading Indian player in Japan’s emerging clean hydrogen and green ammonia import ecosystem.
Japan, with limited domestic renewable resources, is actively seeking reliable international partners for green fuels. India, with its abundant solar and wind potential alongside policy support through the National Green Hydrogen Mission, is well-placed to become a global supplier. The ACME–IHI partnership exemplifies how such synergies can accelerate technology transfer, investment, and supply chain development.
ACME Group’s Growing Green Molecules Footprint
ACME Group’s Green Molecules Business is at the forefront of India’s clean energy transition. The company operates a green ammonia facility in Bikaner, Rajasthan, and is advancing an international project in Duqm, Oman. The Odisha initiatives, backed by the SECI GAPA and the IHI joint venture, further solidify its market leadership.
ACME has forged strategic offtake partnerships with global majors including Yara International (Norway) and IHI Corporation (Japan), as well as leading Indian fertilizer companies such as IFFCO, Paradeep Phosphates Limited, Coromandel International Limited, and Indorama India Private Limited.
By focusing on integrated project development and innovation, ACME aims to decarbonize hard-to-abate sectors and contribute to scalable, cost-competitive green hydrogen and ammonia solutions worldwide. The recent subsidy wins enhance project bankability and pave the way for additional financing and execution momentum.
Broader Industry Implications
The certification of the Gopalpur project under Japan’s Hydrogen Society Promotion Act highlights the effectiveness of innovative financial instruments like CfD in bridging viability gaps for first-of-a-kind green projects. Industry observers expect this to catalyze similar cross-border collaborations and accelerate the commercialization of green ammonia globally.
As the world moves towards net-zero targets, projects like ACME–IHI’s in Odisha demonstrate how targeted policy support, international partnerships, and domestic capabilities can converge to create sustainable energy value chains.
Source : ACME Group’s Green Molecules Business Official Website
