In a major boost to India’s clean energy ambitions, domestic renewable energy company ACME Green Molecules Business has signed a long-term agreement worth approximately USD 1 billion with Japan’s Mitsubishi Gas Chemical (MGC) to supply 100,000 tonnes of green methanol annually. The fuel will be produced at ACME’s upcoming facility in Paradip, Odisha, marking India’s first global partnership in the green marine fuel sector.
The landmark agreement is expected to strengthen India’s position in the global green fuel market while accelerating the adoption of sustainable fuels in the maritime industry.
Paradip to Become a Green Fuel Hub
The green methanol will be manufactured at ACME’s upcoming production facility in Paradip, further expanding the company’s clean energy footprint in Odisha.
The Paradip project is ACME’s third major renewable energy investment in the state, following its green ammonia projects at Gopalpur and Paradip.
The facility is expected to produce green methanol that complies with the Renewable Fuels of Non-Biological Origin (RFNBO) standards, making it suitable for export to international markets with stringent environmental regulations.
Green Methanol to Power Low-Carbon Shipping
Green methanol, produced using renewable electricity and green hydrogen, is emerging as one of the most promising alternatives to conventional marine fuels such as:
- Heavy Fuel Oil (HFO)
- Very Low Sulphur Fuel Oil (VLSFO)
- Marine Gas Oil (MGO)
Industry experts believe green methanol can significantly reduce carbon emissions from the shipping sector while requiring only minimal modifications to existing port infrastructure and marine engines.
The fuel supplied from Odisha will also comply with upcoming environmental norms prescribed by the International Maritime Organization (IMO) and the European Union, making it globally competitive.
Senior Leaders Attend Signing Ceremony
The agreement was signed in the presence of:
- Union Renewable Energy Secretary Santosh Kumar Sarangi
- ACME Group Chairman Manoj Upadhyay
- MGC Managing Executive Officer Hideaki Akase
Speaking on the partnership, Anil Taparia, CEO of ACME Green Molecules Business, said the collaboration with Mitsubishi Gas Chemical would accelerate the commercial-scale deployment of green methanol and strengthen India’s role in the global clean energy supply chain.
He added that the agreement would also support the wider adoption of sustainable fuels across the shipping and aviation sectors.
Hideaki Akase stated that the green methanol sourced from Odisha would have an ultra-low carbon footprint while meeting international sustainability standards and remaining commercially viable for global markets.
ACME Expands Green Energy Investments
The Paradip green methanol project adds to ACME’s rapidly expanding renewable energy portfolio.
The company is currently developing:
- A 405,000-tonne-per-annum green ammonia plant at Gopalpur in partnership with Japan’s IHI Corporation
- An 800,000-tonne-per-annum green ammonia facility at Paradip under a long-term agreement with the Solar Energy Corporation of India (SECI) as part of the National Green Hydrogen Mission’s SIGHT Scheme
ACME also operates India’s first commercial green ammonia plant in Bikaner, Rajasthan, and is expanding internationally through green ammonia projects in Oman.
In addition to its Japanese partnership, the company has secured long-term supply agreements with several global and Indian companies, including Yara International, IFFCO, Paradeep Phosphates, Coromandel International, and Indorama India.
The latest agreement is expected to position Odisha as a key hub for green fuel production while reinforcing India’s ambitions to become a global leader in clean energy exports.
