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ACME-IHI Green Ammonia Project in Odisha Secures Japan's Long-Term CfD Support

The green ammonia joint venture between ACME Group and Japan's IHI Corporation has secured a major boost after Japan selected part of the project's production under its clean hydrogen Contract for Difference (CfD) programme, strengthening long-term demand visibility for one of India's largest export-oriented green hydrogen initiatives.

The 405,000 tonnes per annum (TPA) green ammonia facility being developed at Gopalpur, Odisha, has been certified under Japan's Hydrogen Society Promotion Act by the country's Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). As part of the approval, 228,000 TPA of the project's production has been selected under Japan's clean hydrogen Contract for Difference (CfD) scheme, making it eligible for price support for 25 years, beginning from September 2030.

According to ACME Group, the subsidy mechanism is designed to bridge the price gap between low-carbon hydrogen derivatives such as green ammonia and conventionally produced ammonia, enabling Japanese buyers to procure cleaner fuels at competitive prices. The long-term support is expected to improve the commercial viability of the project while providing stable revenue visibility for the joint venture and greater confidence to investors and lenders.

In addition to the CfD support, the remaining 177,000 TPA production capacity from the Gopalpur project has been earmarked under Japan's Long-Term Decarbonised Power Source Auction (LTDA) programme. The LTDA initiative supports the procurement of low-carbon fuels for Japan's power sector, reinforcing long-term supply arrangements as the country works to reduce emissions from electricity generation while maintaining energy security.

The Gopalpur project is being developed as a large-scale export hub for green ammonia at the Tata Steel Special Economic Zone (SEZ) Industrial Park in Odisha. Powered entirely by renewable energy, the facility is expected to begin commercial operations by July 2030 and will primarily cater to international markets, particularly Japan, where demand for clean hydrogen-based fuels is expected to grow significantly over the coming decades.

Commenting on the development, Anil Taparia, Chief Executive Officer of ACME Green Molecules Business, said the approvals under Japan's CfD and LTDA programmes significantly strengthen the financial foundation of the company's green ammonia portfolio. He added that the long-term revenue certainty supports the objectives of both India's National Green Hydrogen Mission and Japan's broader decarbonisation strategy.

The announcement also complements ACME Group's broader green ammonia expansion plans in Odisha. The company is developing another 800,000 TPA green ammonia facility at Paradip, targeted for commissioning in 2029. ACME has already secured a long-term Green Ammonia Purchase Agreement (GAPA) with the Solar Energy Corporation of India (SECI) for 370,000 TPA, establishing a domestic demand base. In addition, 83,000 TPA from the Paradip project has been selected under Japan's LTDA programme, creating diversified long-term offtake commitments across both Indian and international markets.

Japan has identified hydrogen and ammonia as key components of its long-term decarbonisation roadmap, particularly for hard-to-abate industrial sectors and thermal power generation. Through the Hydrogen Society Promotion Act and its CfD framework, the country aims to accelerate imports of low-carbon hydrogen and its derivatives by reducing the cost differential with fossil fuel-based alternatives. For Indian developers, such long-term policy support not only improves project bankability but also positions India as an emerging global supplier of green hydrogen and green ammonia, in line with its ambition to become a major clean energy export hub.