AM Green Ammonia BV, backed by the founders of Greenko Group, has partnered with Germany’s RWE Supply & Trading to supply green ammonia, and is expected to begin deliveries from its India plants in 2027, the company said in a statement on Thursday.
AM Green will supply 250,000 tonnes of green ammonia per year, according to the memorandum of understanding (MoU). The ammonia will be sourced from AM Green’s production plants in Kakinada and Tuticorin, India. Initially, 50,000 tonnes of green ammonia will be produced at the Kakinada plant, and the remaining volume of up to 200,000 tonnes will be sourced from the Tuticorin plant.
“Deliveries of green ammonia from AM Green’s plants are expected to begin in 2027. A subsequent purchase agreement between RWE and AM Green will detail the contractual provisions,” it said.
The purchase agreement comes at a time when demand for green ammonia and green hydrogen has not been as robust as initially expected. So far, only a few purchase agreements have been signed by companies producing green ammonia and green hydrogen in the country. In June, Sembcorp Green Hydrogen Pte Ltd, an arm of Singapore-based Sembcorp Industries, partnered with two Japanese companies for the purchase of green ammonia from India.
Similarly, Avaada Group has also signed an MoU with Mysore Ammonia, an ammonia distributor and marketer in India, for the extraction of green ammonia.
“AMG is a subsidiary of the AM Green Group. AM Green’s ammonia manufacturing facility will be powered entirely by carbon-free energy sources such as solar, wind and hydro. The ammonia produced will meet EU standards for renewable fuels from non-biological origin (RFNBO) as defined in the Renewable Energy Directive (RED III). AM Green’s Kakinada facility has already been pre-certified for RFNBO compliance. Pre-certification for other facilities is underway,” AM Green said in a statement.
Costas Papamantellos, Head of Global Hydrogen Investments at RWE Supply & Trading, said: “RWE is committed to investing in low-carbon hydrogen and its derivatives to help industries achieve their climate goals. To do this, we are building strong supply chains with partners around the world. The partnership with AM Green enables us to secure green ammonia capacities at an early stage.”
AM Green, founded by Hyderabad-based Greenko Group founders Anil Chalamalasetty and Mahesh Kolli, aims to become a cost-competitive producer of green hydrogen, green ammonia and other green molecules in the world. In India, AM Green is developing production capabilities for green molecules including green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels and various high-value chemicals for decarbonization in hard-to-abate industries.
“We are delighted to partner with RWE to drive the transformation of several industries and several OECD economies. This agreement underlines AM Green’s ability to align with an innovative and flexible procurement structure in line with commodity trading practices. The continued focus on innovation combined with execution reinforces AM Green’s leadership position as a global clean energy transition solutions platform for low-cost green molecules such as hydrogen, ammonia, fuels and other chemicals,” said Mahesh Kolli, Group President of AM Green.
Last month, AM Green Ammonia reached a major milestone with the final investment decision (FID) for its 1 million tonne green ammonia project in Kakinada, Andhra Pradesh. Mint He reported that the investment amount decided for the project is around ₹12.5 billion rupees.
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