New Delhi, July 3 -- ACME Green Molecules on Friday signed a $1 billion binding long-term purchase and sale agreement for 100,000 tonnes of green methanol per annum with Mitsubishi Gas Chemical Company, Inc.

The ACME Group company will supply the green fuel from its 200 kilo tonne per annum green methanol plant being developed in Paradip, Odisha.

Green methanol is gaining traction as a commercially viable substitute for Heavy Fuel Oil (HFO), Very Low Sulphur Fuel Oil (VLSFO) and Marine Gas Oil (MGO) because of its lower carbon dioxide emissions. It also functions as a liquid fuel compatible with existing ship and port infrastructure, requiring only modest modifications to current systems.

"This agreement marks an important milestone in...