ACME Green Molecules, Mitsubishi Gas Chemical sign $1 billion long-term green methanol supply agreement

India's green molecules ambitions received a major boost after ACME Green Molecules Business signed a long-term agreement with Japan's Mitsubishi Gas Chemical Company (MGC) to supply 100,000 tonnes of green methanol annually, in a deal valued at nearly $1 billion.

The agreement marks India's first global collaboration for the supply of RFNBO (Renewable Fuels of Non-Biological Origin)-compliant green marine fuel, positioning the country as an emerging supplier in the fast-growing low-carbon shipping fuel market.

The binding Purchase and Sale Agreement was announced on Friday and comes at a time when global shipping companies are increasingly shifting towards cleaner fuels to comply with tightening decarbonisation norms, including the European Union's FuelEU Maritime regulations and evolving International Maritime Organization (IMO) standards.

The long-term offtake arrangement is expected to provide ACME with demand visibility while strengthening MGC's portfolio of sustainable fuels for global customers.

First Indian RFNBO-compliant marine fuel collaboration

The agreement is the first RFNBO-compliant green marine fuel collaboration by an Indian company. Green methanol is increasingly emerging as a commercially viable alternative to conventional marine fuels such as Heavy Fuel Oil (HFO), Very Low Sulphur Fuel Oil (VLSFO) and Marine Gas Oil (MGO), offering significantly lower lifecycle carbon emissions while requiring only limited modifications to existing ship engines and port infrastructure.

"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. We are proud to partner with MGC, a globally respected leader in the methanol industry, to advance the commercialization of green methanol at scale," said Anil Taparia, Chief Executive Officer, ACME Green Molecules Business.

MGC's Managing Executive Officer, Green Energy & Chemicals Business Sector, Hideaki Akase, said the green methanol supplied under the agreement would have ultra-low carbon intensity compliant with current EU regulations and future IMO norms, while remaining competitively priced. "We are confident that this green methanol has the power to significantly transform not only in Japan or Asia but also the global green chemical and green energy markets," he said.

Odisha emerges as ACME's green molecules hub

The green methanol facility will come up at Paradip, Odisha, becoming ACME Group's third major investment in the state. The company already has a 405,000 tonnes per annum (TPA) green ammonia project at Gopalpur through a joint venture with Japan's IHI Corporation and an 800,000 TPA green ammonia project at Paradip backed by a Green Ammonia Purchase Agreement with the Solar Energy Corporation of India (SECI) under the National Green Hydrogen Mission's SIGHT Scheme.

ACME said these projects are expected to generate employment, strengthen ancillary industries and reinforce Odisha's position as a key clean energy manufacturing hub.

Expanding global green molecules footprint

ACME's Green Molecules Business has been expanding its international presence through operational and upcoming projects across India and Oman. Besides supplying global customers such as Norway's Yara International and Japan's IHI Corporation, the company has also secured domestic offtake agreements with leading fertiliser manufacturers including IFFCO, Paradeep Phosphates, Coromandel International and Indorama India.

The latest agreement with MGC further strengthens India's credentials as a reliable supplier of green fuels and chemicals for hard-to-abate sectors such as shipping, fertilisers, refining and heavy industry.