As India prepares to launch a full green hydrogen mission, Gurugram-based ACME Group said it plans to invest around Rs 1.5 trillion in green hydrogen and ammonia over seven years, for its next units in Tamil Nadu, Karnataka and Oman. The company is also looking for foreign partners and removal links for these projects.
On Monday, ACME Group had signed a memorandum of understanding with the Tamil Nadu government to offer a Rs 52,474 crore facility at Thoothukudi, consisting of a 5,000 megawatt (Mw) photovoltaic solar power plant, a 1.5 giga watt (Gw) and 1.1 million tons (MT) ammonia production capacity.
“Over the next seven years, we will invest Rs 1.5 trillion in three projects in Tamil Nadu, Karnataka and Oman. We expect Phase 1 of the Tamil Nadu unit to be ready by 2024. We believe land acquisition and approvals could take 9-12 months,” said Sandeep Kashyap, COO of the ACME group.
In Mangaluru, Karnataka, the company had announced a 1.2 million tpa hydrogen and ammonia green plant, along with an associated solar power unit, at an investment of Rs 52,000 crore . In Oman, the company will invest $5 billion in a factory with similar facilities.
For the two Indian projects, the firm is already in talks with capital and off-take partners. For the Oman project, ACME signed an agreement with the Norwegian company Scatec for a 50-50 joint venture.
Kashyap said ACME chose Thoothukudi because of its proximity to the port, opportunities for renewable (solar) power generation in the area, skilled labor and land availability. “Tamil Nadu was the best place considering these aspects and government policies that encourage investment. In the first phase, we will have 300 metric tons of ammonia production, to which another 3,000 metric tons will be added in the second phase,” Kashyap added.
ACME’s mega investment plans come at a time when the government is expected to announce a green hydrogen purchase obligation for fertilizer and oil refining units, similar to the power purchase obligation renewable (RPO).
“Demand is expected to come from sectors such as fertilizers, refining, piped natural gas, steel and cement. India already consumes 9.5 MT of gray hydrogen and imports 3 MT of gray ammonia. Therefore, there is huge potential in these areas,” he added.
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