Yara inks deal for green ammonia from AM Green’s Kakinada plant
The deal covers up to 50% of AM Green’s ammonia production by 2027, made with carbon-free energy
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Hyderabad: Oslo-based Yara Clean Ammonia, the world's largest trader and distributor of ammonia, has signed a long-term deal to source ammonia from the Kakinada facility of Greenko ZeroC, the green ammonia production arm of the India-based AM Green, the firms said on Monday.
The two firms signed "a term sheet for supply of renewable ammonia from Phase 1 of AM Green's ammonia production facility in Kakinada, India", they said in a statement. "This term sheet and the subsequent offtake agreement covers the long-term supply of up to 50 per cent of renewable ammonia from Phase 1 of AM Green's ammonia production facility in Kakinada. The plant will produce, and export renewable ammonia derived from round-the-clock carbon free energy by 2027," it said.
Renewable ammonia and other sustainable fuels from AM Green's platform, will be compliant with EU RFNBO and Renewable Energy Directive requirements. For Yara Clean Ammonia, the renewable ammonia supply will contribute to produce low-emission fertilizer and for decarbonising other industries like shipping, power, and other industries.
AM Green President Mahesh Kolli said, "We are delighted to partner with Yara Clean Ammonia to propel the transformation of various industries and several OECD economies. Continuous 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."
Yara Clean Ammonia CEO Hans Olav Raen said, "The AM Green Kakinada project expands our portfolio of ammonia produced with renewable energy and consolidates Yara Clean Ammonia's position as a reliable supplier of low-emission ammonia to established and emerging markets like fertilizer production, cracking of clean ammonia to hydrogen, shipping fuel, power generation, and other industrial applications."
Yara Clean Ammonia -- headquartered in Oslo, Norway -- operates the largest global ammonia network with 15 ships and has, through Yara, access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world. Revenues and EBITDA for FY23 were USD 1.9 billion and USD 101 million, respectively.
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.
