ACME Green Molecules, Mitsubishi Gas Chemical sign $1 billion green methanol supply deal

Acme Group's Acme Green Molecules Business has signed a long-term agreement with Japan's Mitsubishi Gas Chemical Company (MGC) to supply 100,000 tonnes of green methanol annually, marking what the companies describe as India's first global green marine fuel collaboration. The estimated investment in this long-term agreement is approximately $1 billion.

Under the binding purchase and sale agreement, ACME Green Molecules will supply renewable green methanol to MGC for use in the global marine fuel market. The companies said the partnership is aimed at supporting the shipping industry's transition towards low-carbon fuels that comply with evolving international environmental regulations.

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Green methanol is increasingly being considered as an alternative to conventional marine fuels such as Heavy Fuel Oil (HFO), Very Low Sulphur Fuel Oil (VLSFO), and Marine Gas Oil (MGO). According to the companies, the fuel can significantly reduce lifecycle carbon dioxide emissions while being compatible with existing shipping and port infrastructure with limited modifications.

ACME Green Molecules Business Chief Executive Officer Anil Taparia said, "The partnership represents a significant step in the company's efforts to expand its global green methanol business and accelerate the adoption of sustainable fuels in the marine and aviation sectors."

MGC Managing Executive Officer Hideaki Akase said the agreement would help supply green methanol with ultra-low carbon intensity that is expected to comply with European Union and future International Maritime Organization regulations, while supporting the transition to sustainable energy markets.

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The green methanol will be produced at ACME Group's facility in Paradip, Odisha, which forms part of the company's broader investments in the state. ACME said the Paradip project is its third major green energy investment in Odisha, following green ammonia projects in Gopalpur and Paradip.

ACME Group's Green Molecules Business is expanding its portfolio of green hydrogen, ammonia and methanol projects in India and overseas, including facilities in Bikaner and Duqm, Oman. The company has also secured supply agreements with several domestic and international partners as it seeks to strengthen its presence in the global clean energy market.