As Japanese Prime Minister Sanae Takaichi concluded her three-day visit to India, ACME Group on Friday signed a binding long-term agreement worth about $1 billion to supply 100,000 tonne of green methanol annually from its upcoming Paradip plant in Odisha to Japan’s Mitsubishi Gas Chemical (MGC). The fuel will be used as marine fuel, marking India’s first large global green marine fuel partnership and one of the biggest commercial milestones for the country’s emerging green hydrogen-derived export industry.
The agreement was announced alongside the 16th India-Japan Annual Summit, where India and Japan identified clean energy, resilient supply chains and economic security as key pillars of their Special Strategic and Global Partnership.
Why Green Methanol
Green methanol is produced by combining green hydrogen with captured carbon dioxide. Unlike hydrogen or ammonia, it can be transported, stored and bunkered using existing fuel infrastructure with relatively modest modifications, making it one of the most commercially viable low-carbon alternatives for the shipping industry.
Demand is being driven by tightening international shipping regulations, including the International Maritime Organisation’s decarbonisation roadmap and the European Union’s FuelEU Maritime framework. ACME said the fuel supplied under the agreement will comply with Europe’s Renewable Fuels of Non-Biological Origin (RFNBO) standards as well as future IMO requirements, positioning the project to serve global export markets.
Green hydrogen mission
For India, the agreement has significance beyond marine fuel exports. While the National Green Hydrogen Mission has triggered billions of dollars of planned investments, developers have struggled to secure long-term customers before committing capital to large projects. Binding offtake agreements such as the ACME-MGC contract reduce demand risk, improve project bankability and provide lenders with the revenue visibility needed to finance large-scale green fuel facilities.
“This agreement marks an important milestone in ACME Group’s journey to build a globally competitive green methanol business and accelerate the transition to sustainable fuels and chemicals in marine and aviation sectors,” said Anil Taparia, Chief Executive Officer of ACME Green Molecules Business. He said the partnership with Mitsubishi Gas Chemical would help accelerate the commercialisation of green methanol at scale.
India-Japan Partnership
The agreement also highlights the growing commercial depth of the India-Japan clean energy partnership. For ACME, it builds on an expanding green molecules portfolio that includes green ammonia projects at Gopalpur and Paradip backed by partnerships with IHI Corporation, SECI, Yara International and Indian fertiliser companies.
More broadly, the deal signals an important shift for India’s National Green Hydrogen Mission. While policy incentives and project announcements have laid the foundation, long-term export contracts such as this will determine which projects move from blueprint to execution, marking the transition from government-led ambition to commercially anchored global demand.
For Mitsubishi Gas Chemical, the attraction is access to fuel that meets emerging international sustainability standards.
“The green methanol that MGC will offtake under this contract will have the ultra-low carbon intensity compliant with EU regulations and future IMO regulations, alongside an attractive price to the green market,” said Hideaki Akase, Managing Executive Officer, Green Energy & Chemicals Business Sector at Mitsubishi Gas Chemical. He added that the fuel has the potential to transform global green chemical and energy markets while supporting the transition to a sustainable society.
“Japan is expected to become a major importer of green fuels as it decarbonises hard-to-abate sectors but has limited renewable energy resources. India, with abundant solar and wind capacity and expanding port infrastructure, is positioning itself as a competitive producer of green hydrogen derivatives for export,” said officials from ACME on the deal cementing the complementary strengths of the two countries.