Indian renewable energy company ACME Group said it had raised $488 million in fresh funding from REC, a major green infrastructure financial institution, for its upcoming green hydrogen and ammonia project at the Special Economic Zone (SEZ) in Duqm in Oman.

The loan amount will be utilised to kick start the first phase of the pioneering green hydrogen and green ammonia project, the group said in a statement.

The facility is expected to produce 100,000 tonnes of green ammonia annually in its starting phase. It will then be expanded to 1.2 metric million tonnes per annum with about 3.5 GW of electrolyser capacity, which will be powered by 5.5 GWp of the solar PV plant.

"The securing of debt for the green hydrogen and ammonia project in Oman is an important milestone," said Shashi Shekhar, ACME Group Vice Chairman, after signing the deal with Vivek Kumar Dewangan, Chairman and Managing Director, REC.

Shekhar said his company would start the construction activities soon and build one of the most advanced technologies and create a state-of-the-art facility in Oman.

"The securing of debt for the green hydrogen and ammonia project in Oman is an important milestone. We will start the construction activities soon and build one of the most advanced technologies and create a state-of-the-art facility," he stated.

"As a company deeply committed to offering comprehensive green energy solutions, ACME Group is thrilled to receive support from one of the largest funding agencies in the renewable sector. This endorsement not only strengthens our resolve but also stands as a testament to the group’s unwavering dedication and proven track record in establishing top-quality assets," he added.

ACME Group also announced the signing of a significant deal with REC for a loan of over Rs21 billion for setting up 380 MW (round-the-clock renewable power) RTC, Phase 1 of Odisha and Phase 1 of Tamil Nadu Green Ammonia projects and 600 MWhr of Pumped Hydro Project.

"These projects are poised to play a pivotal role in facilitating the energy transition journey and contributing significantly to achieving India's green energy targets," Dewangan stated, adding they will boost to the entire renewable energy value chain.

REC has consistently been at the forefront of supporting cutting-edge technologies that not only address the challenges posed by climate change and environmental degradation but also foster a conducive investment environment.