India strengthens green fuel exports with long-term supply deals to Japan

India is strengthening its position as a global supplier of green fuels following the signing of long-term offtake agreements between ACME Cleantech Solutions (ACME Group) and Japan's IHI Corporation for green ammonia and Mitsubishi Gas Chemical Company, Inc. for green methanol.

Speaking at the signing ceremony, Renewable Energy Secretary Santosh Kumar Sarangi said India's green hydrogen sector is becoming commercially mature, with the country's clean fuels increasingly positioned as reliable exports that support the development of international green hydrogen and green ammonia value chains.

Under the agreement with IHI Corporation, ACME will supply 405,000 tonnes of green ammonia annually. The arrangement is backed by Japan's Contracts for Difference (CfD) scheme for low-carbon ammonia, administered by the country's Ministry of Economy, Trade and Industry (METI), which provides price support to Japanese buyers.

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ACME has also entered into a 10-year agreement with Mitsubishi Gas Chemical Company to supply 100,000 tonnes of green methanol annually from its Paradip facility.

Commenting on the partnership, Takehiko Matsuo, Vice Minister of Japan's METI, said India has significant potential to produce green hydrogen and green ammonia and noted that the country's green fuels are globally cost-competitive. He added that Japan's future decarbonisation and energy security efforts are expected to increase demand for green ammonia and green hydrogen.

According to the government, the agreements represent some of the largest green ammonia and green methanol offtake commitments between India and Japan to date.

India's National Green Hydrogen Mission, approved in January 2023 with an outlay of INR19,744 crore (USD 2.07 billion), aims to establish the country as a global hub for the production, utilisation and export of green hydrogen and its derivatives.

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