Daijiworld Media Network - Bhubaneswar
Bhubaneswar, Jan 25: ACME Group has announced plans to invest $1.4 billion in a greenfield green methanol plant in Odisha, marking one of the largest private investments in the state’s green fuel sector. The company has signed an agreement with the Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) for the project, which is targeted for commissioning by 2029–30.
The proposed plant will be strategically located near Paradip, adjacent to ACME’s upcoming 2,200-tonne green ammonia project being developed under the Rs 19,000-crore National Green Hydrogen Mission. Anil Taparia, Chief Operating Officer of ACME Group’s Green Hydrogen and Ammonia Business Unit, said the company is expanding its footprint across Odisha with multiple green hydrogen and ammonia projects around Paradip and Gopalpur for domestic as well as export markets. ACME already operates a green ammonia facility at Gopalpur through a joint venture with Japan-based IHI Corp.
The investment comes amid rising global demand for green methanol, driven by stricter marine fuel regulations, including the European Union’s FuelEU Maritime Regulation and the International Maritime Organisation’s goal of achieving net-zero emissions in global shipping by 2050. ACME is in discussions with several global shipping lines to secure offtake agreements, aiming to capitalise on the maritime sector’s shift towards cleaner fuels.
The project will be funded through a mix of debt, internal accruals and a possible equity fund raise, though a final decision on the equity component is yet to be taken. Taparia said discussions are underway with global financial institutions, with IPICOL playing a facilitative role. He also highlighted Odisha’s strengths for green methanol production, citing the availability of biogenic feedstock, supportive industrial policies and access to low-cost green power.
ACME Group currently operates a small-scale green ammonia project in Bikaner, Rajasthan, and a 0.10 million tonnes per annum green ammonia project in Duqm, Oman. The company has set a target of achieving a portfolio of 10 million tonnes per annum of green ammonia or equivalent by 2032.
Under the first tranche of a scheme by the Solar Energy Corporation of India Ltd, ACME has received six letters of award to supply 3.7 lakh tonnes of green ammonia annually to Indian fertiliser and chemical companies for a period of 10 years.
ACME’s Odisha investment places it among major players such as AM Green, Adani Group, Reliance Industries, ReNew, Indian Oil Corporation and NTPC Green, all of whom are making significant investments in India’s green hydrogen ecosystem. The government is positioning India as a global export hub for green hydrogen and its derivatives under the National Green Hydrogen Mission.