ACME Group has signed a major agreement with Odisha's IPICOL to invest $1.4 billion in a green methanol plant, boosting the state's green energy ambitions and maritime fuel production.

ACME Group's Bold Move into Green Methanol

ACME Group, renowned as one of India's leading solar energy platforms, has taken a significant step towards sustainable fuel production with plans for a massive green methanol facility in Odisha.

The company recently inked a key agreement with the Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) for this ambitious project, valued at approximately $1.4 billion, or Rs 12,422 crore.

This greenfield plant aims to produce 200,000 tonnes of green methanol annually, a cleaner alternative fuel primarily targeted at powering global shipping lines.

The initiative underscores ACME's expanding footprint in the green hydrogen and derivatives sector, aligning with India's push for decarbonizing heavy industries.

Strategic Location and Project Timeline

The plant will be strategically positioned in Paradip, Odisha, right next to ACME's existing 2,200-tonne green ammonia facility, which is part of the national Rs 19,000 crore Green Hydrogen Mission.

This proximity allows for efficient integration of production processes, leveraging shared infrastructure and renewable energy sources.

Odisha's advantages, including abundant biogenic feedstock, supportive policies, and low-cost green power, make it an ideal hub for such ventures.

ACME anticipates commissioning the methanol plant by 2029-30, with active discussions underway for offtake agreements with major international shipping companies.

Funding will come from a mix of debt, internal resources, and possibly equity, while talks with global financial institutions are progressing smoothly.

Broader Impact on Odisha and Green Energy Landscape

This investment highlights Odisha's rapid evolution into a prime destination for green industries, moving beyond its mining heritage towards high-tech, sustainable manufacturing.

Odisha offers a perfect ecosystem for green methanol with its biogenic resources, pro-industry policies, and affordable green energy, enabling us to produce at competitive global prices, said Anil Taparia, COO of ACME's Green Hydrogen and Ammonia Business Unit.

The state has recently drawn investment proposals worth Rs 1.67 lakh crore through investor meets, promising jobs for over 1.46 lakh people and signaling strong investor confidence.

For ACME, this methanol project complements its larger ambitions, including a 10 MMTPA green ammonia portfolio by 2032 and partnerships like the one with Japan's IHI for advanced facilities.

Green methanol, produced using renewable hydrogen and captured carbon, promises to slash emissions in shipping, a sector responsible for significant global pollution.

By targeting maritime use, the plant could help international fleets meet stricter environmental regulations while supporting India's net-zero goals.

The agreement not only propels ACME's green portfolio but also positions Odisha as a key player in the global clean energy transition, fostering economic growth through jobs and infrastructure.

Local communities stand to benefit from employment opportunities and skill development in emerging green technologies.

As negotiations for buyers and financiers advance, this project exemplifies how private investment can drive national sustainability targets forward.

In summary, ACME Group's $1.4 billion green methanol plant in Odisha represents a landmark deal with IPICOL, set for 2029-30 commissioning near Paradip, aimed at shipping fuel decarbonization amid the state's rising green investment appeal.

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