BASF and AM Green announce signing of memorandum of understanding on cooperation on low-carbon chemicals

New Delhi: BASF and AM Green BV have signed a Memorandum of Understanding (MoU) to jointly evaluate and develop business opportunities in India for low-carbon chemicals produced exclusively using renewable energy.

The MoU was signed by Markus Kamieth, Chairman of the Executive Board of BASF SE, and Mahesh Kolli, Group President of AM Green, on the sidelines of the German Business Asia Pacific Conference 2024 in New Delhi, a joint statement from BASF SE said.

Mint It was first reported on Sunday that both companies had ventured into low-carbon chemicals and the sale of green ammonia.

Under the MoU, BASF and AM Green intend to conduct a feasibility study for low-carbon chemicals production in India, including a joint assessment of potential technologies. The collaboration also includes a non-binding letter of intent to sell 100,000 tonnes per annum of ammonia produced exclusively using renewable energy, including energy from AM Green’s India plant pumped hydro project.

“Ammonia complies with EU standards”

The statement said the ammonia will comply with European Union (EU) Renewable Fuels from Non-Biological Sources (RFNBO) standards as defined in the Renewable Energy Directive (RED III). Some of AM Green’s facilities have been pre-certified for RFNBO compliance through the “CertifHyTM” voluntary certification program. Pre-certification of AM Green’s other facilities is in progress.

“We are committed to the sustainable transformation of the industries we serve. We believe India is the best place to explore low-carbon chemicals production with our partner AM Green,” said Kamieth.

Kolli said: “We are delighted to partner with a global chemicals leader like BASF to drive the industry’s green transformation. AM Green’s vision to deepen the downstream value chain capabilities of green molecules is at the core of our collaboration with BASF.”

Kolli added that the partnership between AM Green and BASF aims to serve multiple chemical downstream and related consumer industries by providing key green molecular feedstocks to produce chemicals, materials and products in the markets BASF serves. needs.

BASF operates around six business areas, including Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. BASF’s sales in 2023 will reach 68.9 billion euros.

Its shares trade on the Frankfurt Stock Exchange and in the United States as American depositary receipts.

Founded by Anil Chalamalasetty and Mahesh Kolli, founders of Hyderabad-based Greenko Group, AM Green aims to reach a production capacity of 5 MTPA of green ammonia, or about 1 MTPA of green hydrogen, by 2030.

In September, the company cooperated with Germany’s RWE Supply & Trading to supply green ammonia, planning to supply 250,000 tons of green molecules annually by 2027.

It has also signed offtake agreements with major players including Uniper, Yara, Keppel and others for the project, which targets a range of green hydrogen applications.