India-based renewable energy company ACME Group has signed a memorandum of understanding (MoU) to invest around Rs520bn ($6.7bn) to build a green hydrogen and green ammonia project in the Indian state of Karnataka.

The company’s chief operating officer Sandeep Kashyap signed the MoU with Dr EV Ramana Reddy, additional chief secretary to the Karnataka Government’s Commerce & Industries Department.

Karnataka Chief Minister Basavaraj Bommai and other officials were also present at the signing.

Under the terms agreed, ACME Group will establish a green hydrogen and ammonia plant, with an annual capacity of 1.2 million tonnes, in the state. The plant will also have an attached solar power unit.

The facility is expected to be built over the next five years and create more than 2,000 jobs once operational.

At the same time, the state government will assist ACME Group in securing all necessary registrations, approvals and clearances for the project.

ACME Group founder and chairman Manoj Kr Upadhyay said: “We are delighted to partner with the State of Karnataka in developing one of the largest and earliest green ammonia projects in the world.

“We will be a formidable player in accelerating the adoption of the green fuel globally.

“We are grateful to the Government Of Karnataka for their vision in building the state as a green hydrogen hub and extending their full support to this project.”

Last year, ACME Group signed an agreement with Scatec to co-develop a 900MW solar power plant in Rajasthan, India.

The company has agreed to provide turnkey engineering, procurement and construction services for the project, which holds a 25-year power purchase agreement with Solar Energy Corporation of India.

ACME Group has also built an integrated semi-commercial scale project for green hydrogen and green ammonia plant in Bikaner, Rajasthan.