AM Green partners with RWE to begin supplying green ammonia by 2027

AM Green Ammonia BV, a company backed by the founders of Greenko Group, has partnered with German firm RWE Supply & Trading to supply green ammonia. Deliveries from its plants in India are scheduled to begin 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 manufacturing plants in Kakinada and Tuticorin in India. Initially, 50,000 tonnes of green ammonia will be produced at the Kakinada plant, while the remaining up to 200,000 tonnes will be sourced from the Tuticorin plant.

“Green ammonia deliveries from AM Green plants are scheduled to begin in 2027. The subsequent offtake agreement between RWE and AM Green will contain detailed information on the contractual provisions,” it said.

The offtake agreement comes as demand for green ammonia and green hydrogen has not been as strong as initially expected. So far, green ammonia and green hydrogen companies in the country have signed only a handful of offtake agreements. In June, Sembcorp Green Hydrogen Pte Ltd, a unit of Singapore-based Sembcorp Industries, partnered with two Japanese companies to offtake green ammonia from India.

Similarly, Avaada Group has signed a cooperation agreement with Mysore Ammonia, a distributor and marketer of ammonia in India, for off-take of green ammonia.

“AMG is a subsidiary of AM Green Group. AM Green’s ammonia plants will be powered exclusively by zero-emission energy sources such as solar, wind and hydropower. The ammonia produced will meet the European Union standards for Renewable Fuels of Non-Biological Origin (RFNBO) as defined in the Renewable Energy Directive (RED III). AM Green’s plant in Kakinada has already been pre-certified for RFNBO compliance. Pre-certification for other plants is underway,” AM Green said in a statement.

Costas Papamantellos, Head of International Hydrogen Investments at RWE Supply & Trading, said: “RWE is committed to investing in hydrogen and its low-emission derivatives to help industries achieve their climate goals. To this end, we are building strong supply chains with partners around the world. The partnership with AM Green allows us to secure green ammonia production capacity at an early stage.”

AM Green, a company founded by Hyderabad-based Greenko Group founders Anil Chalamalasetty and Mahesh Kolli, aims to become the world’s most cost-competitive producer of green hydrogen, green ammonia and other green molecules. In India, AM Green is developing manufacturing capabilities for green molecules including green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels and various downstream fine chemicals to decarbonize hard-to-abate industries.

“We are delighted to be working with RWE to accelerate the transformation of various industries and several OECD economies. This agreement highlights AM Green’s ability to adapt to an innovative and flexible contractual structure consistent with commodity trading practices. This continued focus on innovation coupled with execution reinforces AM Green’s leadership position as a global clean energy transformation solutions platform for affordable green molecules such as hydrogen, ammonia, fuels and other chemicals,” said Mahesh Kolli, Group CEO of AM Green.

Last month, AM Green Ammonia achieved a major milestone by taking the final investment decision (FID) for its 1 million tonne green ammonia project at Kakinada in Andhra Pradesh. Mint It was reported that the estimated investment amount for the project is approximately ₹12,500 rupees.