Indian renewable energy company ACME Group has raised Rs40 billion ($488 million) in funding from financial investment house REC.

The funding will be used for ACME’s hydrogen project, set to be established at the Special Economic Zone (SEZ) in Duqm, Oman.

In its initial phase, the facility is projected to produce 100,000 tonnes of green ammonia annually. The project will then expand to 1.2 metric million tonnes per annum with approximately 3.5 GW of electrolyser capacity, which will be powered by 5.5 GWp of the solar PV plant.

The Memorandum of Understanding (MoU) formalising the deal was signed during the 14th Clean Energy Ministerial and 8th Mission Innovation meeting (CEM14/MI-8) held in Goa, India.

ACME Group vice chairman, Shashi Shekhar, said that the funding is a crucial milestone for the green hydrogen and ammonia project in Oman.

“Construction activities will commence soon, and the facility will house cutting-edge technologies, solidifying ACME Group’s position as a leader in the renewable energy sector,” he said.

The deal follows the announcement last month that Acme Group will invest 520 billion rupees in India’s southern Karnataka state over five years to set up a green hydrogen and ammonia plant, the state government has announced.

The $6.7 billion investment comes as India aims to manufacture five million tonnes of green hydrogen annually by 2030 to meet its climate targets and become a production and export centre for the fuel.

The green hydrogen and ammonia plant, which is expected to generate about 2,000 jobs, will have the capacity to produce 1.2 million tonnes per annum. It will also have a solar power unit attached.