AM Green wins €585 million green ammonia deal to supply Germany

 AM Green wins €585 million green ammonia deal to supply Germany

Company will produce green ammonia at its Kakinada facility using round-the-clock renewable power and start shipments to Germany in 2029

AM Green on Wednesday said it has bagged a €585 million deal to supply green ammonia to Germany. According to a joint press release, the firm emerged as the sole winner of the competitive Asian lot in the H2Global auction, a German government-backed initiative run by the trading entity Hintco.

It added that over the next 10 years, Hintco will purchase Renewable Fuels of Non-Biological Origin (RFNBO) ammonia from AM Green, with an option to buy additional volumes using the cash generated from reselling the green fuel across European markets.

The production engine for this cross-continent supply chain will be AM Green’s Kakinada facility in Andhra Pradesh. In a shift away from fossil fuels, the company is retrofitting an existing natural gas-based urea and ammonia complex with alkaline electrolysis technology.

To satisfy strict European Union green standards, the plant’s electricity will be fed by a round-the-clock renewable power system backed by pumped-hydro storage. Once production ramps up, the first shipments will set sail for Germany in 2029 straight from the adjacent Kakinada Seaports.

Hintco Chief Executive Officer Timo Bollerhey noted in the release that aggressive bids from serious developers highlight the rapid maturity of the renewable ammonia market.

“Repeated disruptions to fossil fuel supply chains have been felt worldwide.Renewable ammonia carries clean power across oceans to industries that cannot be fully electrified, with little or no carbon emissions,” said Markus Exenberger, Executive Director of the H2Global Foundation and Co-Founder of H2Global.

Echoing the sentiment, Mahesh Kolli, Group President and Joint Managing Director of AM Green, called the auction win a powerful validation of the company's ability to deliver optimally priced green molecules from India at an industrial scale.

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