AM Green To Supply 250k Tonnes Of Green Ammonia To RWE Annually

Kakinada: RWE Supply & Trading has signed an MoU with AM Green Ammonia BV (AMG) for the long-term supply of green ammonia from its plants based in India.

The MoU outlines the supply of up to 250,000 tonnes of green ammonia per year. The ammonia will be sourced from AMG’s production sites in Kakinada in Andhra Pradesh and Tuticorin in Tamil Nadu. Initially, 50,000 tonnes of green ammonia will be produced at the Kakinada site, with the remaining volume of up to 2,00,000 tonnes to be sourced from the Tuticorin facility.

AM Green and SJVN Green Energy Limited (SGEL), wholly-owned subsidiary of SJVN, sometime ago signed an MoU for a long-term agreement to supply and source renewable energy, to be specific 50,000 MW by 2040. AM Green is incorporated by founders of Hyderabad-based Greenko Group, Anil Chalamalasetty and Mahesh Kolli, aims to emerge as a leading energy solution-provider.

AMG is a subsidiary of the AM Green Group. AMG’s ammonia manufacturing facilities will be powered entirely by carbon-free energy sources such as solar, wind, and hydroelectric power.

The produced ammonia will meet EU standards for renewable fuels of non-biological origin (RFNBO) as defined in the Renewable Energy Directive (RED III). AMG’s facility in Kakinada has already been pre-certified for RFNBO compliance. Pre-certification for other facilities is underway.

Deliveries of green ammonia from AMG’s sites are expected to start by 2027, company sources said. A subsequent offtake agreement between RWE and AMG will detail the contractual provisions.

According to Costas Papamantellos, Head of International Hydrogen Investments at RWE Supply and Trading, RW is committed to investing in hydrogen and its low-carbon derivatives to help industries achieve their climate goals. “For this end, we are building strong supply chains with partners globally. Partnering with AMG allows us to secure green ammonia capacities at an early stage,” he said.

AM Green Group president Mahesh Kolli said: “We are delighted to partner with RWE to propel the transformation of various industries and several OECD economies. This agreement emphasizes AM Green’s ability to align itself with an innovative and flexible contracting structure in line with commodity trading practices. Continuous focus on innovation combined with execution reinforces.”

He said 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.

Andhra Pradesh Chief Minister N Chandrababu Naidu at the just-concluded fourth Global Renewable Energy Investment Summit held in Gandhinagar had said that AP government will soon craft an integrated clean energy policy-2024 with the sole aim of encouraging generation of renewable energy. He said their target is to produce 72.60 gigawatts of renewable energy by 2030.