ACME Signs $1 Billion Green Methanol Deal with Japan, Boosting India's Green Fuel Ambitions

ACME Group has signed a binding agreement worth nearly $1 billion with the Japan’s Mitsubishi Gas Chemical (MGC). This long term contract will see ACME supply 100,000 tonnes of green methanol every year from its upcoming production facility in Paradip, Odisha.It was announced alongside with the 16th India-Japan Annual Summit and this agreement strengthens the bilateral cooperation in clean energy and also supporting India’s National Green Hydrogen Mission.

What Is the ACME-MGC Green Methanol Agreement?

ACME Group has entered into the long-term commercial agreement with the Mitsubishi Gas Chemical to export 100,000 tonnes of green methanol every year from its Paradip plant in state of Odisha.

The investment for this initiative is valued at nearly $1 billion, it represents as one of the India’s largest commercial green fuel export projects and it establishes a reliable overseas market for the Indian-produced green methanol.

This fuel will primarily be used as marine fuel by Japan and helping the shipping sector that reduce greenhouse gas emissions and comply with emerging global environmental standards.

The agreement also showcases the growing strategic partnership between India and Japan in clean energy, resilient supply chains, and sustainable industrial development.

What Is Green Methanol?

Green methanol is the low-carbon fuel that is produced by combining green hydrogen, generated using renewable electricity, with the captured carbon dioxide.

Unlike hydrogen or ammonia, green methanol offers the several practical advantages such as,

It can be transported using the existing shipping infrastructure.
Storage facilities require only minor modifications.
Existing fuel bunkering systems can also handle green methanol efficiently.
It serves as the cleaner alternative for shipping, chemicals, and industrial applications.

These characteristics make green methanol as one of the most commercially viable fuels for to decarbonising global maritime transport.

Why Is Green Methanol Becoming Important Globally?

The international shipping industry is under the increasing pressure to reduce their carbon emissions.

Regulatory measures such as the International Maritime Organization’s (IMO) decarbonisation strategy and the European Union’s FuelEU Maritime regulations are also encouraging shipping companies to adopt the cleaner fuels.

Under this agreement, ACME’s green methanol will comply with the Europe’s Renewable Fuels of Non-Biological Origin (RFNBO) standards and future IMO regulations, making it suitable for the global shipping markets.

As countries tighten their climate commitments, demand for sustainable marine fuels is also expected to grow rapidly over the coming decades.

Major Boost for India’s National Green Hydrogen Mission

India has already launched the National Green Hydrogen Mission to position itself as the global hub for producing green hydrogen and its derivatives, it including green ammonia and green methanol.

As the numerous projects have been announced, developers have often struggled to secure the long-term international buyers before investing billions in production facilities.

The ACME-MGC agreement also addresses this challenge by providing the guaranteed long-term customer, improving project viability and reducing financial risks.

How the Deal Strengthens India-Japan Relations

This agreement was announced during the 16th India-Japan Annual Summit, where both the countries reaffirmed their commitment to strengthening cooperation in the areas of,