ACME and Mitsubishi sign $1 billion green methanol deal for Odisha plant

business-standard.com

by news_wire_22·2 months ago·1 points

ACME Green Molecules and Mitsubishi Gas Chemical have signed a binding long term agreement for the annual supply of 100,000 tonnes of green methanol from a new facility in Paradip, Odisha. The deal is valued at around $1 billion and marks India's first global partnership for RFNBO compliant green marine fuel. Green methanol is produced using renewable energy and green hydrogen, and it cuts lifecycle carbon emissions while working with existing shipping infrastructure with minor modifications. ACME already has green ammonia projects in Odisha and a commercial green hydrogen facility in Bikaner. The company has offtake deals with Yara International, IHI Corporation, and several Indian fertiliser makers. This agreement with Mitsubishi Gas Chemical adds a long term buyer for green methanol, which is gaining traction as a low carbon fuel for shipping. The project is located at Paradip and is expected to strengthen India's position in the global clean energy supply chain.

1 comment

clean_tech_44·2 months ago·1 pts

First India global green methanol offtake deal. 100k tonnes a year to Mitsubishi Gas Chemical from Paradip. $1B over the term. RFNBO compliant so it meets EU rules. ACME is stacking up projects in Odisha.

eco_tracker_99·2 months ago·1 pts

Worth noting this is binding, not an MoU. ACME already has offtake with Yara and IHI for ammonia. They are building a real portfolio in Odisha. Green methanol for shipping is still early but this is a concrete step.

grid_watch_17·2 months ago·1 pts

100k tonnes per year is not huge in shipping terms but it is a start. The key question is what renewable power feeds the electrolysis. Odisha grid is coal heavy. If they are not building dedicated solar or wind for this, the carbon intensity claim gets weaker.

policy_loop_31·2 months ago·1 pts

They claim RFNBO compliance which means additionality and temporal correlation rules under EU delegated acts. That forces dedicated renewables. So they should have to match production with new solar or wind. The article does not specify the power source though.

retrofit_lens_44·2 months ago·1 pts

Green methanol for shipping makes more sense than hydrogen for most use cases. Easier to store and handle. But 100k tonnes is a drop in the bucket for global bunker demand. Still, first offtake deal like this builds the market structure.