AM Green, SGEL ink deal for sourcing 50,000 MW by 2040
Under the agreement signed recently in New Delhi, SGEL will supply 4,500 MW of carbon-free energy to AM Green’s upcoming green ammonia facilities
image for illustrative purpose
Vijayawada: AM Green and SJVN Green Energy Limited (SGEL), a wholly owned subsidiary of SJVN, have entered into a MoU for a long-term agreement for supply and sourcing of renewable energy. 50,000 MW by 2040.
Under the agreement signed recently in New Delhi, SGEL will supply 4,500 MW of carbon-free energy to AM Green’s upcoming green ammonia facilities. SGEL will set up this capacity through solar and wind power, while AM Green will integrate it with pumped hydro storage to ensure a steady supply of green energy to AM Green facilities.
AM Green, incorporated by the founders of Hyderabad-based Greenko Group, Anil Chalamalasetty and Mahesh Kolli, is one of India’s leading energy transition solutions providers. SGEL is a wholly owned subsidiary of SJVN Limited. SJVN Limited, a miniratna under the Ministry of Power is a JV between GoI and the Himachal Pradesh Government. SJVN Green has been established as a RE arm for the SJVN group and holds high strategic importance for the group.
The MoU was signed in the presence of Akhileshwar Singh, Director of Finance, SJVN Lt, Ajay Kumar Singh, CEO, AM Jha, CFO, SGEL, Jitendra Yadhav, HOD (F&A), SJVN Ltd, BC Tripathi, Senior Advisor, AM Green, and Dharampal Reddy, AVP, AM Green.
According to a release, SJVN plans to execute the project in three phases, with the first phase delivering 1,500 MW within two years. The initiative is a major milestone for SJVN’s renewable energy expansion in India, supporting its goal of reaching 25,000 MW by 2030 and 50,000 MW by 2040.
AM Green, promoted by the founders of Greenko, targets to produce five million tonnes per annum (MTPA) of green ammonia by 2030, equivalent to about one MTPA of green hydrogen. This represents a fifth of India’s target for green hydrogen production under the country’s National Green Hydrogen Mission and 10% of Europe’s target for green hydrogen imports by 2030.
Mahesh Kolli, Founder, Greenko Group & AM Green, said: “We are delighted to partner with SJVN on one of the world’s largest carbon-free, renewable energy supply contracts. This partnership demonstrates AM Green’s emerging leadership position as a global clean energy transition solutions platform while contributing to India’s ambition of emerging as an exporter of reliable, sustainable and lowest-cost green molecules and its derivatives accelerating industrial decarbonisation globally.”
In his message, Ajay Singh, CEO, SJVN Green, said: “We are elated to embark on this collaboration with AM Green, as it holds tremendous potential for accelerating the development of renewable assets in India. The project also marks SJVN’s foray into supplying power to private sector entities. With our ambitious capacity addition targets, SJVN is actively pursuing opportunities across the spectrum and is keen to take forward this arrangement with AM Green.”
