ACME signs $1 billion green methanol supply deal with Japan’s Mitsubishi Gas Chemical | Today’s news
ACME Green Molecules on Friday signed a binding long-term contract for the purchase and sale of 100,000 tons of green methanol per year worth $1 billion with Mitsubishi Gas Chemical Company, Inc.
ACME Group will supply the green fuel from its 200 kg per annum green methanol plant being developed at Paradip in Odisha.
Green methanol is gaining popularity as a commercially viable replacement for heavy fuel oil (HFO), very low sulfur fuel oil (VLSFO) and marine gas oil (MGO) due to lower carbon dioxide emissions. It also works as a liquid fuel compatible with existing ship and port infrastructure, requiring only minor modifications to current systems.
“This agreement represents an important milestone on ACME Group’s journey to build a globally competitive green methanol business and accelerate the transition to sustainable fuels and chemicals in the marine and aerospace sectors. We are proud to partner with MGC, a globally recognized leader in the methanol industry, to advance the commercialization of green methanol at scale,” said Anil Taparia, CEO of ACME Green Molecules Business.
“ACME Group has continuously created new frameworks in new business areas, now it is trying to navigate the green methanol challenge. We are honored to have entered into a long-term contract to purchase this green methanol and contribute to overcoming these challenges,” said Hideaki Akase, Executive Director, Green Energy and Chemicals Business Sector, Mitsubishi Gas Chemical.
Odisha Project
ACME is developing the plant in collaboration with Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL).
In January, Mint reported that ACME Group had signed a deal to build a $1.4 billion (about ₹12,422 crore) green methanol plant in Odisha with an annual production capacity of 200,000 tonnes for ship propulsion.
According to a company statement on Friday, the deal between ACME Green Molecules and Mitsubishi Gas Chemical is the first ever collaboration between an Indian company on green marine fuel in compliance with the RFNBO.
Renewable fuels of non-biological origin (RFNBO) is a legal classification under European Union regulations that includes synthetic fuels such as green hydrogen and green methanol produced using renewable electricity.
Japan is pushing
On Thursday, the Union Ministry of New and Renewable Energy announced that under the National Green Hydrogen Mission, ACME Group has secured long-term offtake contracts with leading Japanese companies – IHI Corporation for green ammonia and Mitsubishi Gas Chemical Company, Inc. (MGC) for green methanol.
On June 30, ACME Group and Japan’s IHI Corp. secured a US$3 billion price subsidy from the Japanese government for their green hydrogen joint venture in Odisha, enabling customers in Japan to purchase green hydrogen at a price comparable to gray hydrogen.
ACME’s 405,000-ton-a-year Gopalpur Green Hydrogen Project will supply green ammonia to IHI Corp., as well as other Japanese customers, including Mitsubishi Gas Chemical Co., Hokkaido Electric Power Co., Nippon Beet Sugar Manufacturing Co., Kobelco Power Kobe Inc., and Sumitomo Corp.
