ACME Group to invest Rs 1.5 trn in green hydrogen over 7 yrs; seeks tie-ups

Plans come at a time when govt is likely to announce a green hydrogen purchase obligation for fertiliser and petroleum units, similar to renewable purchase obligation

At a time when India is set to bring out a comprehensive green hydrogen mission, Gurugram-based ACME Group has said it is planning to invest about Rs 1.5 trillion in green hydrogen and ammonia over seven years, for its upcoming units in Tamil Nadu, Karnataka and Oman. The company is also looking for foreign equity partners and off-take tie ups for these projects.

On Monday, ACME group had signed a memorandum of understanding with the Tamil Nadu government to come up with a Rs 52,474-crore facility in Thoothukudi, consisting of a 5,000 mega watt (Mw) solar PV plant, 1.5 giga watt (Gw) electrolyzer and 1.1 million tonnes (MT) ammonia production capacity.  

“Over the next seven years, we will be investing Rs 1.5 trillion on 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 may take 9-12 months,” said Sandeep Kashyap, chief operating officer, ACME Group.
 

In Karnataka’s Mangaluru, the company had announced a 1.2 million tonne per annum green hydrogen and ammonia plant, along with an associated solar power unit, at an investment of Rs 52,000 crore. In Oman, the company will be investing $5 billion for a plant with similar facilities. For the two Indian projects, the firm is already in talks with equity and off-take partners. For the Oman project, ACME has signed an agreement with Norway-based Scatec for a 50-50 joint venture.  

Kashyap said ACME chose Thoothukudi due to its proximity to the port, scope for renewable generation (solar) in the region, skilled manpower and land availability. “Tamil Nadu was the best place considering these aspects and government policies that encourage investments. During the first phase, we will have 300 metric tonnes of ammonia production, to which another 3,000 metric tonnes 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 fertiliser and petroleum refining units, similar to renewable purchase obligation (RPO).

“Demand is expected to come from sectors like fertilisers, refining, piped natural gas, steel and cement. India already consumes 9.5 MT of grey hydrogen and imports 3 MT of grey ammonia. Hence, there is huge potential in these areas,” he added.

The Plan

• Rs 52,474 crore: ACME's planned investment in Tamil Nadu

• The project includes a 5 giga watt (Gw) solar power plant, a 1.5 Gw electrolyzer, and 1.1 million tonne of ammonia production capacity

• The company is also coming up with over Rs 52,000 crore investment in its Karnataka and  $5 billion in Oman

• For the Oman project, ACME has already signed an agreement with Norway-based Scatec as a 50-50 joint venture.