India’s ACME pledges $3.3bn to green hydrogen and ammonia complex at Tata Steel-owned site
Industry newsThe envisioned facility, if brought to fruition, is poised to dispatch both hydrogen and one million tons of ammonia to markets in Europe and East Asia, utilizing the already available port infrastructure in Gopalpur, as indicated by the company. Collaborative involvement in the ACME project will be provided by the Japanese engineering entity IHI Corporation, which has entered into a preliminary agreement to participate in its phased development.
While the comprehensive plant is anticipated to achieve an annual production capacity of 1.3 million tons of ammonia, the exact output of hydrogen (H2) or ammonia (NH3) during the initial phases remains undisclosed. Notably, ACME has successfully secured a lease agreement for 343 acres within the industrial park to facilitate the construction of the plant. However, specific details regarding the timeline for construction commencement and operational launch have not been revealed.
India's strategic objective entails establishing a minimum of five million tons of clean hydrogen production capacity per year by 2030. This capacity may be adjusted to ten million tons annually if a viable export market materializes. This ambition aligns with the National Green Hydrogen Mission set forth by the government, which places emphasis on domestically generated green ammonia to replace imported nitrogen fertilizers by 2035.
T.V. Narendran, the CEO and Managing Director of Tata Steel, has additionally communicated plans to integrate hydrogen into the company's steelmaking operations. This involves moving beyond pilot studies to incorporate hydrogen in a 40% blend with fossil gas within a blast furnace.
In terms of export potential, officials have proposed that up to 70% of the domestically produced green hydrogen could be directed for international markets. Reports have surfaced indicating ongoing discussions between the Indian government and the European Union, potentially involving the supply of ten million tons of hydrogen annually. Likewise, negotiations with Singapore have been suggested, envisioning an annual export of five million tons of ammonia.