The joint venture between ACME Group and Japan’s IHI Corporation secured approximately
$3 billion in price support from the Japanese government for its green ammonia project in Gopalpur, Odisha. The financial backing significantly enhances the project’s commercial viability and strengthens its position as one of India’s largest international green hydrogen initiatives. The support is expected to improve long-term revenue certainty, attract project financing, and accelerate the development of large-scale green ammonia production for export to Japan.
Support Comes Under Japan’s Contract for Difference (CfD) Scheme
The funding has been approved under Japan’s Contract for Difference (CfD) subsidy mechanism, which is designed to accelerate the adoption of clean hydrogen and ammonia. Under the scheme, Japanese buyers can procure green hydrogen and green ammonia at prices comparable to conventionally produced grey hydrogen, while the Japanese government compensates producers for the difference in production costs. This mechanism reduces market risk, improves price competitiveness, and encourages long-term adoption of low-carbon fuels across Japanese industries.
Odisha Facility to Produce 4,05,000 Tons of Green Ammonia Annually
Located in Gopalpur, Odisha, the project will have an annual production capacity of 405,000 tonnes of green ammonia. The facility will supply green ammonia to IHI Corporation and several leading Japanese industrial companies, including Mitsubishi Gas Chemical, Hokkaido Electric Power, Sumitomo Chemical, UBE Corporation, Kobelco Power Kobe and Nippon Beet Sugar Manufacturing. The long-term supply agreements underscore growing demand in Japan for clean ammonia as industries transition toward lower-carbon energy sources.
Long-Term Offtake Strengthens Project Economics
As part of the support package, Japan will provide long-term financial support for the purchase of 2,28,000 tons of green ammonia annually over a 25-year period, beginning in September 2030. In addition, another 177,000 tonnes per year has been selected under Japan’s Long-Term Decarbonized Power Source Auction, further strengthening demand visibility for the Odisha-based project. These long-term commitments provide stable offtake arrangements, improving revenue predictability and enhancing investor confidence.
Advancing India’s Green Hydrogen Mission
The project represents a major milestone for India’s National Green Hydrogen Mission, which aims to position the country as a global hub for green hydrogen and its derivatives. By producing
export-oriented green ammonia using renewable energy, the ACME-IHI joint venture will contribute to reducing global carbon emissions while supporting India’s ambitions to become a leading supplier of clean fuels.
Strengthening India-Japan Clean Energy Collaboration
Beyond its commercial significance, the project also reinforces the strategic clean energy partnership between India and Japan. While India expands its renewable energy and green hydrogen manufacturing capabilities, Japan continues to secure reliable supplies of low-carbon fuels to achieve its long-term decarbonization objectives. The collaboration demonstrates how international partnerships can accelerate investments in clean energy infrastructure while creating sustainable global supply chains for green hydrogen and green ammonia.
A Landmark Project in the Global Green Ammonia Market
With approximately US$3 billion in government-backed price support, long-term offtake commitments, and strong participation from leading Japanese industrial companies, the ACME-IHI joint venture is well positioned to become one of the largest cross-border green ammonia projects in the region. As reported by projectstoday.ai, the project not only strengthens the business case for large-scale green ammonia exports from India but also marks a significant step toward building a resilient global green hydrogen economy.
