AM Green Ammonia B.V., backed by Greenko Group's founders, has tied up with RWE Supply & Trading of Germany to supply green ammonia, and it's expected to start deliveries from its India plants by 2027, the company said in a statement on Thursday.
AM Green would supply 250,000 tonnes of green ammonia per year, according to the memorandum of understanding (MoU). The ammonia will be sourced from AM Green's production sites in Kakinada and Tuticorin, India. Initially, 50,000 tonnes of green ammonia will be produced at the Kakinada site, with the remaining volume of up to 200,000 tonnes to be sourced from the Tuticorin facility.
The offtake agreement comes when the demand for green ammonia and green hydrogen has not been as robust as it was initially expected. Only a few offtake agreements have been signed by companies producing green ammonia and green hydrogen in the country so far. In June Sembcorp Green Hydrogen Pte Ltd, an arm of Singapore-headquartered Sembcorp Industries, tied up with two Japanese companies for green ammonia offtake from India.
Similarly, Avaada Group has also signed an MoU with Mysore Ammonia, an ammonia distributor and trader in India, for green ammonia offtake.
"AMG is a subsidiary of the AM Green Group. AM Green'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 European Union standards for Renewable Fuels of Non-Biological Origin (RFNBO) as defined in the Renewable Energy Directive (RED III). AM Green’s facility in Kakinada has already been pre-certified for RFNBO compliance.