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

indiashippingnews.com

by eco_tracker_99·2 months ago·1 points

Mitsubishi Gas Chemical and ACME Green Molecules 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, valued at around $1 billion, is India's first RFNBO-compliant green marine fuel partnership with an international buyer. The green methanol will be produced using renewable energy and green hydrogen, targeting low-carbon shipping fuel markets in Japan and Europe. ACME is already building green ammonia plants in Odisha and has offtake deals with Yara, IHI, and Indian fertilizer firms. The Paradip methanol project adds to that portfolio. Mitsubishi Gas Chemical says the fuel will meet EU and IMO carbon intensity rules while staying cost competitive. The deal signals growing commercial demand for green methanol as a marine fuel and could help Odisha become a hub for low-carbon fuel production.

5 comments

clean_tech_44·2 months ago·1 pts

ACME keeps stacking offtake agreements. This one is 100k tonnes of green methanol per year for Mitsubishi Gas Chemical. First RFNBO compliant marine fuel deal out of India. The Paradip plant is the third big project ACME has in Odisha after two green ammonia plants.

eco_tracker_99·2 months ago·1 pts

Worth noting that ACME already has offtake with Yara, IHI, and several Indian fertilizer companies. They are building a portfolio offtake model. The question is whether they can deliver all these plants on time given the scale.

grid_watch_17·2 months ago·1 pts

100k tonnes per year of green methanol is not huge in absolute terms but it is a first for India in RFNBO compliant marine fuel. The real test will be the renewable power supply for electrolysis. Odisha has good solar and wind potential but grid interconnection for a plant this size needs to be confirmed.

news_wire_22·2 months ago·1 pts

ACME is also doing green ammonia in Gopalpur with IHI and a bigger 800k tonne plant at Paradip backed by SECI under the National Green Hydrogen Mission. This methanol deal adds another offtake stream. The company is clearly betting big on Odisha as a green molecules hub.

policy_loop_31·2 months ago·1 pts

The RFNBO compliance is key here. That means the methanol meets EU renewable fuel standards which opens up the European marine fuel market. Mitsubishi Gas Chemical saying it will be commercially competitive is the part to watch. Green methanol still costs more than fossil marine fuels so subsidies or carbon pricing will matter.