Greenko’s AM Green and Gentari, the clean energy division of Petronas, have signed definitive agreements with an affiliate of GIC to produce 5 million tons per annum (MTPA) of green ammonia by 2030. The amount, which is equivalent to about 1 MTPA of green hydrogen, will place the new venture among one of the world’s pioneers in large-scale and cost-competitive green ammonia production. One MTPA of green hydrogen is equivalent to about a fifth of India’s target for green hydrogen production under the country's National Green Hydrogen Mission and 10% of Europe's target for green hydrogen imports by 2030.
The partnership will focus on the production of green ammonia across multiple locations in India. The move is expected to boost efforts to achieve net zero targets in India as well as OECD markets. OECD stands for the Organisation for Economic Co-operation and Development.
The exports of green ammonia to key OECD markets such as Germany, Japan, South Korea and Singapore from this platform is expected to begin in late 2025.
The green ammonia will be produced by a unit of AM Green, AM Green Ammonia Holdings, which will also receive investments from GIC, Gentari and AM Green. Following the investments, the unit will be a funded platform that will invest in the Indian regions of Andhra Pradesh, Tamil Nadu, Gujarat, Karnataka, and Himachal Pradesh. This will be done in phases.
The production of green ammonia by AM Green will be supported by the round-the-clock renewable energy supplied via offtake agreements with reputed counterparties and electrolysers manufactured by another unit of AM Green (AM Green Technology & Solutions).
"We are delighted to partner with Gentari and GIC, to venture into the global low carbon green economy. The commitment from Gentari and GIC underpins Prime Minister Modi's vision for India to become a leader in global energy transition. This strategic partnership will work to accelerate net zero targets of various industries and several OECD economies. Continuous focus on innovation combined with execution will ensure our venture, AM Green, remains ahead of others in becoming a global clean energy transition solutions platform,” says Anil Chalamalasetty, founder of Greenko Group and AM Green.
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“As Gentari expands our portfolio of clean energy solutions in Malaysia, Asia Pacific and beyond, we believe in the critical importance of industry-level collaborations that combine complementary strengths and unlock synergies. This partnership with AM Green and GIC is a testament to our commitment in accelerating green hydrogen adoption globally, to make an impact in the pursuit of a net zero future. In OECD, Southeast and East Asian economies, green ammonia will address the decarbonisation of industries such as power generation, through co-firing, as well as shipping,” adds Sushil Purohit, CEO of Gentari.
Citigroup Global Market India Pvt. Ltd. and Cyril Amarchand Mangaldas acted as the exclusive financial and legal advisors to AM Green for this transaction. Bank of America (BofA) was the advisor to Gentari for this deal.
