ACME Group Announces Major $1.4 Billion Green Methanol Investment in Odisha
In a significant move towards sustainable energy, ACME Group, one of India's leading solar platforms, has formalized an agreement to establish a $1.4 billion (approximately ₹12,422 crore) green methanol plant in Odisha. This ambitious project aims to produce 200,000 tonnes of green methanol annually, primarily to fuel ships, as disclosed by Anil Taparia, Chief Operating Officer (COO) at ACME Green Hydrogen and Ammonia Business Unit.
Strategic Partnership and Project Details
The agreement has been inked with the Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL), marking a key collaboration between the private sector and state government. The greenfield facility is scheduled to be commissioned by 2029-30, positioning Odisha as a hub for green fuel production. ACME is currently in discussions with several global shipping lines to secure offtake agreements, ensuring demand for the output.
Anil Taparia highlighted that the project will be part of a broader green cluster in Odisha, with multiple green hydrogen and ammonia initiatives underway around Paradip and Gopalpur. These projects cater to both domestic needs and export markets, leveraging Odisha's strategic advantages.
Driving Forces Behind Green Methanol Demand
The investment comes amid growing global demand for green methanol, a derivative of green hydrogen, driven by tightening marine fuel standards. Key regulations include the European Union's FuelEU Maritime Regulation and the International Maritime Organisation's (IMO) targets, which call for net-zero greenhouse gas emissions in global shipping by 2050. This regulatory push has spurred investments from major Indian players like Adani Group, Reliance Industries Ltd, and NTPC Green Ltd in the green hydrogen space.
According to industry projections, the global green methanol market is expected to be driven primarily by shipping decarbonization, with maritime demand estimated at 5–10 million tonnes per annum by 2030. Europe is anticipated to account for 40–50% of import demand, with additional interest from hubs in Singapore, Japan, and South Korea.
India's Role as an Export Hub
Backed by the National Green Hydrogen Mission, the Indian government aims to develop the country as an export hub for green hydrogen and its derivatives, including green methanol. This vision is supported by large-scale renewable capacity, port access, and policy incentives. Taparia noted that Odisha's abundant biogenic feedstock, supportive industrial policies, and low-cost green power supply create a robust ecosystem for producing green methanol at globally competitive costs.
Funding and Future Plans
The project will be funded through a combination of debt, internal accruals, and potential equity fundraising, though no final decision has been made. ACME is in discussions with global financial institutions, with IPICOL acting as a facilitator. Beyond this initiative, ACME Group is expanding its green ammonia portfolio, with projects in Bikaner, Rajasthan, and Duqm, Oman, aiming for a 10 MMTPA capacity by 2032.
Impact on Maritime and Domestic Sectors
The maritime sector is poised to be the primary consumer of green methanol, with initiatives like the Shipping Corporation of India retrofitting ships to run on green fuels by 2027. Additionally, ACME has secured six letters of award from the Solar Energy Corporation of India to supply 370,000 tonnes per year of green ammonia to the fertilizer sector, underscoring the diverse applications of green fuels.
In summary, ACME Group's $1.4 billion investment in Odisha not only marks a major private sector commitment to green energy but also aligns with global decarbonization trends, positioning India as a key player in the sustainable fuel market.
