ACME-IHI JV secures Japan CfD subsidy support for green ammonia project in Odisha

ACME Group and IHI Corp.’s green ammonia joint venture (JV) has secured support under the Japanese government’s Contract for Difference (CfD) program for its 405,000 tonnes per annum (tpa) green ammonia project in Gopalpur, Odisha.

The CfD scheme is designed to bridge the price gap between low-carbon hydrogen and its derivatives, including green ammonia, and conventional fuels and feedstocks.

Under the CfD programme, Japan will provide price support for 228,000 tpa of clean ammonia supply from the Gopalpur project for a 25-year period starting September 2030. This is intended to help bridge the cost gap between green and conventional ammonia for various Japanese off-takers.

Additionally, 177,000 tpa of the Gopalpur project’s capacity has been earmarked under Japan’s Long‑Term Decarbonized Power Source Auction (LTDA), to further underpin project assurances for the JV to supply decarbonized fuel into Japan’s power sector over a long‑term horizon, stated ACME.

The ACME-IHI Green Ammonia JV is developing the Gopalpur facility as a renewable energy-powered export hub for green ammonia. The project is located at the Tata Steel SEZ Industrial Park in Odisha’s Gopalpur district and is scheduled for commissioning by July 2030.

“The selection of Gopalpur joint venture under Japan’s clean hydrogen CfD scheme, together with LTDA support for capacities at Gopalpur and Paradip, is an important milestone for ACME,” said Anil Taparia, CEO of ACME Green Molecules Business. “These approvals provide long‑term revenue visibility across our green ammonia portfolio and materially strengthen the bankability of our projects while supporting the objectives of India’s National Green Hydrogen Mission and Japan’s decarbonization framework.”

Separately, ACME Group has started another green ammonia project in Paradip, Odisha, with a production capacity of 800,000 tpa to be commissioned by 2029. It has signed a Green Ammonia Purchase Agreement (GAPA) with Solar Energy Corp. of India (SECI) for 370,000 tpa. A further 83,000 tpa has now been awarded under the LTDA programme for supplies to Japan. With these milestones, a substantial portion of Paradip’s output now benefits from long‑term, contracted demand across both Indian and international markets.