In A World's Largest, India's ACME Group Inks Agreement with Japan's IHI Corp for Green Ammonia Plant with $5 Bn Investment

Indian Renewable Energy company - ACME and Japanese heavy industry major IHI Corporation sign one of the largest pact to supply Green Ammonia from India to Japan

ACME Group, a leading renewable energy company in India, and IHI Corporation, a Japanese integrated heavy industry group, signed an offtake term sheet for supply of green ammonia from Odisha, India to Japan. The term sheet was signed by Founder and Chairman of Acme Group, Manoj Upadhyay and President and CEO of IHI Corporation, Hiroshi Ide, in the presence of Union Minister for Power and New & Renewable Energy R. K. Singh.

The two companies will set up a green ammonia plant in Gopalpur, Odisha at an investment of Rs 60,000 crore.

The term sheet between IHI and ACME covers the supply of 0.4 MMTPA (million metric tons per annum) of green ammonia from Phase-1 of Odisha project in Gopalpur on a long-term basis.

Both companies wish to partner across the value chain, starting from production to logistics, supply to the Japanese customers and to create the market for green ammonia for use in a range of applications in power generation and various industrial uses in Japan to reduce the overall emissions.

Speaking about the agreement, the Union Minister for Power and New & Renewable Energy Shri R. K. Singh said that this is one of the first and largest agreements in the world in the field of green hydrogen and green ammonia. “Japan has been a close friend and partner of India. This collaboration in renewable energy in going green will further strengthen our partnership. India’s cost of making green hydrogen and green ammonia is already among the most competitive in the world. We are going to emerge as one of the largest manufacturers of green hydrogen and green ammonia in the world.”

Speaking about the strategic partnership, Ambassador of Japan to India Mr. Hiroshi Suzuki said that the signing of the term sheet marks a major milestone. “The partnership between Acme and IHI will bring remarkable success, given the potential of globally competitive green hydrogen in India. I express the Government of Japan’s unwavering support in taking forward the collaboration between India and Japan in the energy sector”, he added.

The Ambassador said that India-Japan Clean Energy Partnership, established by Prime Minister Narendra Modi and Prime Minister Fumio Kishida, has been driving the cooperation between the two countries. “I express the Government of Japan’s unwavering support in taking forward the collaboration between India and Japan in the energy sector”, he added.

The Ambassador also requested the Union Power & NRE mimister for early signing of Green Hydrogen and Green Ammonia Joint Declaration of Intent (JDI) involving the Ministry of Economy, Trade and Industry, Government of Japan and Ministry of New & Renewable Energy (MNRE) Government of India.

Japanese company IHI Corporation will be supporting the project to set up the 1.2 million tonne plant that is expected to require $5 billion of total investment.

Director and Managing Executive Officer, IHI Corporation, Shri Jun Kobayashi said: “This agreement builds upon our earlier MoU with ACME and represents the strong relationship and alignment between the two companies in developing the market for this new generation fuel”.

Last month, Adani Group also announced that the group had partnered with IHI Corporation along with an another Japanese major, Kowa company, to study & explore ammonia co-firing at the Adani Power Mundra plant. The studies aim at initially de-carbonizing Adani’s coal fired plants but with a larger objective to implement the technology in other coal-fired plants across India.

In October last year, AMG Green, a company founded by Hyderabad-based renewables group, Geenko, has secured $1.75 billion from Gentari of Malaysia's Petronas, and Singapore’s GIC sovereign wealth fund, to develop one of world's largest green ammonia platform. Prior to that, in April, Avaada Group today announced fundraise of $1.07 billion for its green hydrogen and green ammonia ventures in India. 

In A Biggest Fundraise, Greenko Group Founders-owned AM Green Secures $1.75 Bn for One of the World's Largest Green Ammonia Platform

AM Green Ammonia Holdings (AMG Green), a company founded by Hyderabad based renewables group, Geenko, has secured $1.75 billion from Gentari, the clean energy division of Malaysia's Petronas, and Singapore’s GIC sovereign wealth fund, to develop one of world's largest green ammonia platform.

With investment of $1.60 billion, Petronas will secure a 30% stake in AM Green, valuing the newly formed company at $5 billion. The Greenko founders —Mahesh Kolli and Anil Kumar Chalamalasetty— will hold the remaining 70% along with Singaporean wealth fund GIC, which will invest $250 million.

This capital raise by AM Green is said to be one of the top five biggest capital raises in India in 2023 and among the world’s largest energy-transition deal.

According to a joint press release issued by Gentari and AM Green, the project aims to produce 5 million tonnes of green ammonia each year (MTPA) until 2030. This is equivalent to around 1 MTPA of green hydrogen and will account for 20% of India’s target for green hydrogen production by 2030 or 10% of Europe’s imported renewable hydrogen targets.

The green ammonia will be produced by a unit of AM Green — AM Green Ammonia Holdings. Post-investment from Gentari, GIC and AM Green, the unit will be a fully funded platform that will invest, in phases, in the Indian regions of Andhra Pradesh, Tamil Nadu, Gujarat, Karnataka, and Himachal Pradesh.

AM Green Ammonia will become one of the world’s leading producers of green ammonia.

AM Green will also produce green molecules such as green methanol, green caustic soda, green chlorine, bio fuels and various down stream high value green chemicals under its AM Green Molecules subsidiary.

Additionally, AM Green will also house a joint venture with John Cockerill of Belgium to manufacture electrolysers in its AM Green Technology & Solutions subsidiary; supplying about 6.5 GWs of electrolysers to AM Green Ammonia by 2030.

The first shipments of green ammonia will begin by late 2025 and will serve key OECD markets, including Germany, Japan, South Korea and Singapore.

Earlier in June, in Asia's largest equity round ever raised by any green energy company, Avaada Group had successfully closed $1.3 billion funding round bolstering its green hydrogen, green methanol, green ammonia, solar manufacturing and renewable power generation ventures.

MCF Successfully Commissions Ammonia Energy Improvement Project

Vintage plant now highly energy efficient at par with modern plants

Mangalore Chemicals & Fertilizers Limited (MCF), a subsidiary of Zuari Agro Chemicals Limited, an Adventz Group company, has announced the successful implementation of the Ammonia Energy Improvement Project. MCF, with a history of over 50 years has attained energy efficiency at par with modern plants. The project was implemented at a capital cost of over Rs.400 Crore and is expected to deliver significant improvement to the bottom line.

MCF converted its urea operation earlier from naphtha to gas based after the receipt of gas in December 2020. As per the extant policies of Government of India for the urea manufacturing companies, there is a mandate to reduce the energy norms further from December 2025. In the process, it has converted the vintage plant to a highly energy efficient plant at par with modern plants to comply with the mandate of the DOF to achieve the Target Energy Norm.

The existing plants were studied by renowned technology providers in the field of ammonia and the project was completed with the support of marquee global and domestic suppliers. Post commissioning, the ammonia production will increase by 25% coupled with reduction in the energy consumption by about 10-12%. The operating margins are expected to improve further with reduction in the energy consumption from the existing levels to 5.5 Gcal/MT and in the long run have a sustainable positive impact on the environment.

MCF, is the only chemical fertilizer manufacturer of urea and complex fertilizers in the state of Karnataka established in early 1970s, catering to our esteemed farming community in the southern states of Karnataka, Kerala, Tamil Nadu, Andhra Pradesh and Telangana. Our brand “Jai Kisaan Mangala” enjoys considerable reputation and brand franchise due to the company’s long term and sustained efforts in product quality, innovation and deep customer engagement.

Mr. T M Muralidharan, Chief Financial Officer, MCF, said, “On account of shutdown for the project commissioning, there is negative financial impact for the quarter and half year ended September 30, 2022. However, with all the plant and production parameters in line with the new performance standards, the bottom line for the rest of the year is expected to show significant improvements”.

About Mangalore Chemicals & Fertilizers Limited (MCF)

Mangalore Chemicals and Fertilizers Limited (MCF) is a subsidiary of Zuari Agro Chemicals Limited, an Adventz Group, led by Chairman Saroj Kumar Poddar. MCF is the largest manufacturer of chemical fertilizers in the state of Karnataka. It is an ISO 14001:2015 and ISO 45001:2018 certified Company. MCF has been regularly recognized in the Agro Chemical industry. MCF has received numerous awards for performance as a manufacturing unit, dynamic workplace culture, safety standards, contributions to the community and environment. MCF creates value for farmers and stakeholders by providing integrated agri solutions to all farm needs.