BHUBANESWAR : India’s clean energy major ACME Green Molecules Business and Japan’s Mitsubishi Gas Chemical (MGC) signed a binding long-term agreement for the annual supply of 100,000 tonnes of green methanol, marking India’s first global collaboration in the green marine fuel sector.
The deal is expected to strengthen India’s position in the global transition towards low-carbon shipping fuels while giving a major boost to Odisha’s emerging green energy ecosystem. The estimated investment in this long-term agreement is around $1 billion.
The green methanol will be produced at ACME’s upcoming facility at Paradip in Odisha, which is set to become the company’s third major investment in the state after its green ammonia projects at Gopalpur and Paradip.
The company said the collaboration is a milestone for India’s green hydrogen and green molecules industry, as it represents the country’s first Renewable Fuels of Non-Biological Origin (RFNBO)-compliant green marine fuel partnership with an international buyer.
Green methanol is emerging as a viable alternative to conventional marine fuels such as heavy fuel oil (HFO), very low sulphur fuel oil (VLSFO) and marine gas oil (MGO). Produced using renewable energy and green hydrogen, it reduces lifecycle carbon emissions while remaining compatible with existing shipping and port infrastructure with only limited modifications.
Anil Taparia, chief executive officer (CEO) of ACME Green Molecules Business, said the partnership with Mitsubishi Gas Chemical, one of the world’s leading methanol companies, will help commercialise green methanol at scale and strengthen India’s role in the global clean energy value chain. “It will also accelerate the transition to sustainable fuels for the marine and aviation sectors,” he said.
ACME has already committed to developing a 405,000-tonnes-per-annum green ammonia plant at Gopalpur in partnership with Japan’s IHI Corporation and an 800,000-tonnes-per-annum green ammonia facility at Paradip backed by a long-term purchase agreement with the Solar Energy Corporation of India (SECI) under the National Green Hydrogen Mission’s SIGHT Scheme. The Paradip green methanol project will further consolidate its position.
Hideaki Akase, managing executive officer for the green energy and chemicals business at Mitsubishi Gas Chemical Co Inc, said the green methanol to be supplied under the contract would have ultra-low carbon intensity compliant with European Union regulations and future International Maritime Organisation norms while remaining commercially competitive. “The partnership has the potential to transform not only the Japanese and Asian markets but also the global green chemicals and green energy sectors,” he said.
ACME has already secured long-term offtake partnerships with several global and domestic companies, including Norway’s Yara International, Japan’s IHI Corporation and leading Indian fertiliser manufacturers such as IFFCO, Paradeep Phosphates, Coromandel International and Indorama India.
The company is also expanding its international footprint through green ammonia projects in Oman while operating India’s first commercial green ammonia facility in Bikaner, Rajasthan.
