2024-10-27 21:35:24 :
NEW DELHI: German chemicals major BASF has signed an agreement with AM Green to assess opportunities in low-carbon chemicals, two people familiar with the matter said.
Under the partnership, BASF may purchase 100,000 tonnes of green ammonia per year from the Hyderabad-based company, one of two people familiar with the matter said.
The two companies will begin a feasibility study on low-carbon chemicals production in India and conduct a joint evaluation of potential technologies.
As some of AM Green’s plants have been pre-certified to EU Renewable Fuels from Non-Biological Sources (RFNBO) specifications and pre-certification of others is in progress, the ammonia supplied to BASF will comply with EU standards.
In September, AM Green cooperated with Germany’s RWE Supply & Trading to supply green ammonia. It plans to supply 250,000 tons of green molecules annually by 2027.
AM Green Ammonia has reached a major milestone by taking the final investment decision (FID) for its 1 million tonne green ammonia project in Kakinada, Andhra Pradesh. Mint According to reports, the investment in the project is approximately $125 billion rupees.
AM Green 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.
Green ammonia production
AM Green’s production of green ammonia will be supported by round-the-clock renewable energy. The company has locked in the 1,300 megawatts of carbon-free electricity it needs around the clock. A 25-year fixed-price power purchase agreement (PPA) with NTPC covers half of the capacity, with the remainder expected to be provided by Gentari, the renewable energy arm of Petronas.
Gentari is the clean energy arm of Malaysian energy giant Petronas, a unit of GIC Holdings Pte Ltd, and a year ago AM Green agreed to produce 5 million tonnes of green ammonia per year by 2030.
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 addition to its flagship Kakinada project, AM Green is eyeing multiple sites across India to achieve its target of 5 tonnes/year of green ammonia by 2030.
Headquartered in Germany, BASF operates in six business areas, including Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care, and Agricultural Solutions. In 2023, sales reached 68.9 billion euros.
BASF did not immediately respond to a mailed inquiry. AM Green Group President Mahesh Kolli declined to comment.
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