September 19, 2024: AM Green Ammonia B.V. (AMG) has signed a Memorandum of Understanding (MoU) with RWE Supply & Trading for the long-term supply of up to 250,000 tonnes of green ammonia per year. The ammonia will be sourced from AMG’s production plants in Kakinada and Tuticorin, India, and is expected to play a key role in the decarbonization of industries globally.
In the initial phase, AMG’s Kakinada facility will produce 50,000 tonnes of green ammonia, with the remaining volume of up to 200,000 tonnes sourced from its Tuticorin site. AMG, a subsidiary of the AM Green Group, will power its ammonia manufacturing facilities entirely with renewable energy sources such as solar, wind, and hydroelectric power.
This commitment ensures that the ammonia meets the EU’s standards for Renewable Fuels of Non-Biological Origin (RFNBO) as defined in the Renewable Energy Directive (RED III). AMG’s Kakinada plant has already been pre-certified for RFNBO compliance, with pre-certification for other facilities currently underway.
AM Green and RWE Sign MoU for 250,000 Tonnes of Green Ammonia Supply by 2027
The green ammonia deliveries from AMG are expected to start by 2027. A subsequent offtake agreement between RWE and AMG will outline the contractual specifics of this long-term supply partnership.
Mahesh Kolli, Group President of AM Green, highlighted the significance of this collaboration: “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 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.”
Costas Papamantellos, Head of International Hydrogen Investments at RWE Supply & Trading, added: “RWE 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.”
AMG’s approach to utilizing renewable energy for ammonia production marks an important step in the global transition to cleaner energy sources. By securing up to 250,000 tonnes of green ammonia annually, this partnership positions AMG as a significant player in providing sustainable energy solutions.
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. AM Green is leveraging a track record of entrepreneurship in pioneering new technologies and pathways to shape the future of energy.
The company aims to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world. In India, AM Green is developing production capabilities for green molecules (green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels and various downstream high value chemicals) for decarbonization in hard-to-abate industries. The venture will also set up an international renewables and storage business and a JV for making electrolyzers with John Cockerill of Belgium.
