ACME Secures $1 Billion Green Methanol Offtake Agreement with Mitsubishi Gas Chemical

ACME Green Molecules has signed a binding long-term purchase and sale agreement with Japan's Mitsubishi Gas Chemical Company (MGC) for the supply of 100,000 tonnes of green methanol every year, as per an Economic Times report.  

The agreement is valued at about $1 billion. The fuel will be produced at ACME's green methanol project in Paradip, Odisha, where the company is setting up a plant with an annual capacity of 200,000 tonnes. 

Project Linked to Earlier Investment 

The Paradip project is being developed with the Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL). In January, ACME Group announced plans to invest around $1.4 billion (approximately ₹12,422 crore) in the facility.  

The plant is intended to supply green methanol for marine applications, with commercial production planned after construction is completed. The company said the agreement is the first Renewable Fuels of Non-Biological Origin (RFNBO)-compliant green marine fuel collaboration involving an Indian company.  

RFNBO is a category under European Union regulations covering fuels such as green methanol and green hydrogen that are produced using renewable electricity. 

Focus on Marine Fuel 

Green methanol is being considered by the shipping industry as an alternative to Heavy Fuel Oil (HFO), Very Low Sulphur Fuel Oil (VLSFO) and Marine Gas Oil (MGO). 

It produces lower carbon dioxide emissions than conventional marine fuels and can be stored, transported and supplied through existing port infrastructure with relatively limited modifications. 

In a statement, ACME Green Molecules Chief Executive Officer Anil Taparia said the agreement marks the start of long-term commercial supplies from the company's green methanol business.  

Mitsubishi Gas Chemical Managing Executive Officer Hideaki Akase said the contract reflects the company's efforts to expand its activities in the green methanol segment. 

Japan Agreements Continue 

The latest agreement follows a series of clean energy arrangements announced by ACME Group with Japanese companies. Under the National Green Hydrogen Mission, the company has signed long-term offtake agreements with IHI Corporation for green ammonia and Mitsubishi Gas Chemical for green methanol. 

Separately, on 30 June, ACME Group and IHI Corporation secured $3 billion in price support from the Japanese government for their green hydrogen joint venture in Odisha.  

The Gopalpur project has a planned production capacity of 405,000 tonnes annually and is expected to supply green ammonia to IHI Corporation and other Japanese companies, including Mitsubishi Gas Chemical, Hokkaido Electric Power, Sumitomo Chemical, UBE Corporation, Kobelco Power Kobe and Nippon Beet Sugar Manufacturing. 

Read More: FPI Selling Spree Extends in June 2026 with ₹49,340 Crore Withdrawal! 

Conclusion 

The long-term contract covers half of the planned production capacity of ACME's Paradip green methanol facility. The project is expected to supply the Japanese market once commercial production begins. 

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