ACME signs $1 billion green methanol supply agreement with Japan’s Mitsubishi Gas Chemical

Published 3 July 2026 · india

ACME Green Molecules on Friday signed a $1 billion binding long-term purchase and sale agreement for 100,000 tonnes of green methanol per annum with Mitsubishi

ACME Green Molecules on Friday signed a $1 billion binding long-term purchase and sale agreement for 100,000 tonnes of green methanol per annum with Mitsubishi Gas Chemical Company, Inc. The ACME Group company will supply the green fuel from its 200 kilo tonne per annum green methanol plant being developed in Paradip, Odisha. Green methanol is gaining traction as a commercially viable substitute for Heavy Fuel Oil (HFO), Very Low Sulphur Fuel Oil (VLSFO) and Marine Gas Oil (MGO) because of its lower carbon dioxide emissions. It also functions as a liquid fuel compatible with existing ship and port infrastructure, requiring only modest modifications to current systems. Quick answers to key questions • 5 QUESTIONS 1 What is the significance of the ACME and Mitsubishi Gas Chemical green methanol agreement? ⌵ The ACME and Mitsubishi Gas Chemical agreement is significant as it is a $1 billion long-term deal for green methanol, marking a milestone in establishing a globally competitive green methanol market and advancing sustainable fuels in the marine and aviation sectors.

2 How does green methanol compare to traditional marine fuels? ⌵ Green methanol is gaining traction as a viable substitute for traditional marine fuels like Heavy Fuel Oil and Marine Gas Oil due to its lower carbon dioxide emissions and compatibility with existing ship and port infrastructure, requiring only modest modifications. 3 Where is ACME developing its green methanol plant? ⌵ ACME is developing its green methanol plant in Paradip, Odisha, with an annual production capacity of 200,000 tonnes to produce sustainable marine fuel. 4 Why is the agreement between ACME Green Molecules and Mitsubishi Gas Chemical noteworthy? ⌵ This agreement is noteworthy as it represents the first RFNBO-compliant green marine fuel collaboration by an Indian company, highlighting India's advancements in the green fuel sector. 5 What role does the Green Hydrogen Mission play in ACME's projects? ⌵ Under the Green Hydrogen Mission, ACME secured long-term offtake agreements with Japanese firms for both green ammonia and green methanol, facilitating the commercialization and expansion of renewable energy solutions. "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 of ACME Green Molecules Business. "ACME Group has continuously created new frameworks in new business fields, is now trying to navigate through the challenge in green methanol field. We are honored to have concluded a long-term contract to purchase this green methanol and contribute to overcome those challenges," said Hideaki Akase, managing executive officer, green energy & chemicals business sector, Mitsubishi Gas Chemical. Odisha project ACME is developing the plant in partnership with Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL). In January, Mint reported that ACME Group had signed an agreement to build a $1.4 billion (about ₹12,422 crore) green methanol plant in Odisha with an annual production capacity of 200,000 tonnes to fuel ships. According to the company's statement on Friday, the agreement between ACME Green Molecules and Mitsubishi Gas Chemical is the first-ever RFNBO-compliant green marine fuel collaboration by an Indian company.