Acme to invest ₹52,474 cr in green hydrogen plant in TN
NEW DELHI: Acme Group will invest ₹52,474 crore to set up a green hydrogen and ammonia plant in Tamil Nadu, the company said on Tuesday.
The project will comprise a 5 gigawatt (GW) solar photovoltaic plant, 1.5 GW electrolyzer unit and will produce 1.1 million tonnes of ammonia.
Mint had reported on 9 May that Acme Solar Holdings Ltd was looking to set up an integrated renewable energy and green ammonia production facility in Tamil jNadu at an investment of about $6 billion (₹48,000 crore).
“This facility will be perhaps the largest in the world. It will produce green hydrogen and ammonia, which will help to decarbonize sectors such as fertilizers, power, refining and steel. The project requires four ingredients—solar radiation, access to port, availability of land and skilled resources. Tamil Nadu offers all of these,” Acme Group founder and chairman Manoj Kumar Upadhyay said in a statement.
Green hydrogen is produced by splitting water into hydrogen and oxygen using electrolyzers. The electrolysis is powered by energy from renewable resources such as wind and solar. India has set a 5 million-tonne green hydrogen target by 2030 to help bolster its geopolitical heft and be a game changer for its energy security. India imports 85% of its oil and 53% of gas requirements.
Acme Solar is the last Indian promoter-owned large green energy platform with 8.5 GW of operational and under-development projects. Founded in 2003 by Upadhyay, Acme Solar announced its plans to produce green hydrogen in India and Europe in partnership with Lhyfe Labs SAS of France. Acme Solar is also an equal partner of Equinor-promoted Scatec ASA for a 1.2 million tonnes per annum green ammonia project in Oman. It has signed an agreement to have Japan’s NYK Line as a strategic shipping partner for its green ammonia projects.
“ACME is willing to work with the government to not only help build this project but also to create an ecosystem of smaller units,” said Sandeep Kashyap, COO, Acme Group.
With the Centre promoting the emission-free new- age, fuel, Indian firms such as Adani Group, Reliance Industries, and Greenko Group have shown significant interest in the sector.