By: ICN Bureau
Last updated : July 02, 2026 9:59 am
IHI will offtake the ammonia produced in India and take responsibility for supplying it to users in Japan
ACME Group has secured a $3 billion grant from Japan to support its green ammonia project located in Odisha. This financial support is part of Japan’s Contract for Difference (CfD) program, which provides price backing for 228,000 tonnes of green ammonia exports per year starting in September 2030. The project is a joint venture between ACME Group and Japan’s IHI Corporation.
The project has been certified under Japan’s price gap support program by the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism pursuant to the Hydrogen Society Promotion Act.
In this supply chain development, IHI will offtake the ammonia produced by a low-carbon ammonia manufacturing project being jointly developed with ACME Group in Odisha, located in eastern India, and supply it to the seven companies -- Kobelco Power Kobe (a wholly owned subsidiary of Kobe Steel), Sumitomo Chemical Co., Nippon Beet Sugar Manufacturing Co., Hokkaido Electric Power Co., Mitsubishi Gas Chemical Company, and UBE Corporation) - in Japan. The seven companies will use the ammonia as fuel for power generation and as feedstock for chemical and other industrial applications, thereby contributing to the reduction of environmental impact.
The certification marks an important milestone in the development of Japan’s ammonia value chain from fiscal 2030 onward. The seven companies will work to steadily advance and expand the utilization of low-carbon ammonia, aiming to contribute to the realization of a carbon-neutral society.
IHI’s Role in the plan
IHI will offtake the ammonia produced in India and take responsibility for supplying it to users in Japan. In addition to developing domestic receiving and utilization infrastructure, IHI will also promote decarbonization through its use at its own facilities, contributing to the realization of a large-scale green ammonia value chain. Going forward, IHI aims to expand this value chain across a wide range of sectors both in Japan and overseas, while establishing a safe and stable supply system.