India's Acme Group and Japan's IHI Corp have secured a $3 billion price support subsidy from the Japanese government for their green hydrogen joint venture in Odisha. The Gopalpur project, with an annual capacity of 405,000 tonnes, aims to supply green ammonia to IHI Corp and several Japanese customers, enabling competitive pricing against grey hydrogen, according to livemint.com.
The subsidy is structured as a contract for difference (CfD), which will allow customers in Japan to purchase green hydrogen at costs comparable to those of grey hydrogen produced from non-renewable sources. The project will supply green ammonia to companies including Mitsubishi Gas Chemical Co., Hokkaido Electric Power Co., Nippon Beet Sugar Manufacturing Co., Kobelco Power Kobe Inc., Sumitomo Chemical Co., and UBE Corp, as detailed by livemint.com.
This development is significant as green hydrogen typically costs more than grey hydrogen due to the use of renewable energy sources. The Odisha project represents a major step in scaling green hydrogen production and reducing costs, aligning with Japan's broader strategy to decarbonize its energy supply. The involvement of multiple Japanese industrial customers highlights the growing demand for cleaner energy alternatives in the region.
The Gopalpur green ammonia project is expected to play a key role in Japan's energy transition, with the $3 billion CfD subsidy marking one of the largest supports for green hydrogen ventures between India and Japan. The project’s annual capacity of 405,000 tonnes positions it as a major supplier in the green hydrogen market, as reported by livemint.com.