ACME-IHI Joint Venture Gets $5 Billion Japanese Backing for Odisha Green Ammonia Initiative

ACME Group has collaborated with Japan's IHI Corporation to secure $5 billion in Japanese government backing for green energy projects in Odisha, as per The Economic Times news report. This financial commitment supports India's broader aim of decarbonising industrial sectors through the production of green ammonia. 

Joint Venture Overview: ACME and IHI Corporation 

The joint venture between ACME Group and Japan’s IHI Corporation has been instrumental in advancing India's green ammonia initiatives.  

Established last September 2025, the partnership is focused on developing a major green ammonia project in Gopalpur, Odisha. The project aims to produce 4,05,000 tonnes annually, with all output dedicated to the Japanese market from September 2030. 

Support Under Japan's CfD and LTDA Programmes 

Japan's Contract for Difference (CfD) and Long-Term Decarbonized Power Source Auction (LTDA) programmes have selected the Gopalpur project for substantial financial backing.  

Under the CfD programme, $3 billion will be provided over 15 years to offset costs between conventional and renewable energy-derived ammonia. An additional $2 billion is secured through the LTDA programme for promoting decarbonisation in Japan’s power sector. 

Green Ammonia: Industrial Applications in Japan 

In Japan, the project's green ammonia will be used as a co-firing fuel in coal-fired power plants and as raw material in chemical production.  

It will also serve as a cleaning agent in semiconductor manufacturing, marking its diverse industrial application potential. 

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Additional Developments in Odisha 

Beyond the Gopalpur project, ACME Group is advancing another 8,00,000 TPA green ammonia project in Paradip, Odisha, targeted for completion by 2029.  

ACME has also secured an agreement to supply 3,70,000 TPA to the Solar Energy Corporation of India, establishing a domestic market foundation. 

Conclusion 

The ACME-IHI joint venture has secured $5 billion in Japanese funding for green ammonia projects in Odisha, aimed at producing 4,05,000 TPA for Japan. This financial support under Japan's CfD and LTDA programmes emphasises the pivotal role of green ammonia in industrial decarbonisation. 

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