ACME Group raises Rs 40 billion from REC for green hydrogen project

ACME Group secured funding of Rs 40 billion for its green hydrogen and green ammonia project in Oman from REC Limited. The funds raised from REC Limited will be used to build the facility’s first phase, to be established at the special economic zone in Duqm, Oman.

This first phase is expected to produce 100,000 tonnes of green ammonia per year, with additional expansion to 1.2 million per year. In addition, 3.5GW electrolytic capacity for the production of green hydrogen will be added in tandem with this expansion. A 5.5 GW peak photovoltaic solar power plant will provide the green energy for all of these systems.

Recently, during the 14th Clean Energy Ministerial meeting in Goa, the ACME signed a memorandum of understanding (MoU) with REC Limited, totalling over Rs 210 billion, for the construction of 380 MW (round-the-clock renewable power) RTC, phase 1 Green Ammonia Projects in Odisha and Tamil Nadu, and 600 MWh of Pumped Hydro Projects.

In June 2023, a POSCO-led consortium was awarded a $6.7 billion contract for producing green hydrogen in Duqm, Oman. The proposed green hydrogen project will be the world’s largest. POSCO Group, a South Korean steelmaker, owns a 28 per cent majority stake in the consortium’s operation. POSCO indicated in March 2022 that Oman was one of the countries that it was evaluating for hydrogen investment, and the country’s authorities met with POSCO early in 2023.

In March 2023, Sembcorp Industries, based in Singapore was awarded a contract to build, own, and operate the Manah Solar II Independent Power Plant (IPP) in Manah, Oman. Oman Power and Water Procurement Company awarded the contract to the company (OPWP). The contract was secured through a joint venture formed by Sembcorp’s subsidiary, Sembcorp Utilities, and Jinko Power Technologies.