India Signs First Global Green Methanol Supply Deal

ACME Green Molecules Business, part of India’s ACME Group, signed a binding long-term Purchase and Sale Agreement with Mitsubishi Gas Chemical Company on 3 July 2026. The agreement covers the supply of 100,000 tonnes per annum of green methanol and has an estimated value of about USD 1 billion.

Green Methanol

Green methanol is a low-carbon fuel produced from renewable feedstocks and used in industrial and maritime applications. It is different from conventional methanol because its production pathway is designed to reduce lifecycle carbon dioxide emissions.

RFNBO and Maritime Fuel Standards

RFNBO stands for Renewable Fuels of Non-Biological Origin, a category used in European Union fuel regulation. The supplied green methanol is intended to comply with European Union rules and future International Maritime Organization carbon-intensity regulations for shipping fuels.

Production and Industrial Location

The green methanol will be produced at ACME’s facility in Paradip, Odisha. This project is the group’s third major investment in Odisha, a state on India’s eastern coast with a major port at Paradip.

Important Facts for Exams

• Methanol is a chemical compound with the formula CH3OH and is also called methyl alcohol.
• Green methanol can be used as a marine fuel with modest modifications to existing ship and port infrastructure.
• The International Maritime Organization is the United Nations specialised agency for shipping safety and marine pollution control.
• Odisha has a long coastline on the Bay of Bengal and hosts major industrial and port-based projects.

India in Low-Carbon Shipping Fuels

India has entered the global market for low-carbon marine fuels through this agreement. The contract links an Indian producer with a Japanese chemical company in the international trade of alternative shipping fuel.