* The company will also develop a solar power unit meant to produce green hydrogen in Mangaluru.
* According to the MoU, in the first phase, the company proposes to invest Rs 5,300 crore and in the second phase Rs 46,565 crore.
Gurugram-based ACME Cleantech Solutions Private Limited has announced that it has signed a Memorandum of Understanding (MoU) with the state government of Karnataka where it has proposed the setting up of a sizeable green hydrogen and ammonia plant.
ACME's plan envisages that it will be investing Rs 51,865 crore ($6.7 billion) in Karnataka within five years from here. The company will also develop a solar power unit meant to produce green hydrogen in Mangaluru.
It should be pointed out that between just ACME, Adani, ReNew Power and others, total announcements for renewable energy and green Hydrogen in the Southern states are already touching Rs 200,000 crores. That is because these are at an MOU stage. Actual conversion of these commitments to investments is subject to a lot of factors, notably state policies, the state of the markets and much more. Needless to add, there is zero liability on the ivesting firm for an MOU it has failed to honour subsequently, which explains the amazing optimism at the time pf signing these.
For now, ACME's entire project will be developed in two different phases. According to the MoU, in the first phase, the company proposes to invest Rs 5,300 crore and in the second phase Rs 46,565 crore. It has proposed to generate 1,800 jobs.
The MoU was signed in the presence of Chief Minister Basavaraj Bommai, Karnataka Energy Minister V Sunil Kumar and Shashi Shekhar, Vice-President of the ACME Group.
Under the pact, the Karnataka government will facilitate ACME to get necessary permissions, registrations, approvals, clearances and incentives from the concerned department. This will be done in line with its present policies, rules and regulations.
India has set a target to manufacture 5 million tonnes of green hydrogen every year by the end of this decade that is aimed at not just meeting its climate change mitigation targets but also help the country to become a production and export centre for green hydrogen. Recently, ReNew Power too signed an agreement with Karnataka where it will be investing $6.4 billion in the state on energy projects.
On the other hand, ACME will also be building the world's largest green ammonia projects at the Special Economic Zone at Port of Duqm in Oman.