BASF and AM Green partner for low-carbon chemicals and green ammonia

04 Nov 2024 CW Team

German chemical giant BASF has signed an agreement with Hyderabad-based AM Green to explore opportunities in low-carbon chemicals, with the potential of sourcing up to 100,000 tonnes of green ammonia annually from the company, according to industry sources.

As part of this collaboration, BASF and AM Green will conduct feasibility studies to assess low-carbon chemical production in India and evaluate related technologies. AM Green, whose plants have begun pre-certification under the European Union's standards for renewable fuels of non-biological origin (RFNBO), will ensure that ammonia supplied to BASF meets EU criteria.

This partnership follows AM Green's recent agreement with Germany’s RWE Supply & Trading to supply 250,000 tonnes of green ammonia annually by 2027. Additionally, AM Green recently reached a final investment decision for its 1 million-tonne green ammonia project in Kakinada, Andhra Pradesh, valued at around Rs 125 billion, with offtake agreements secured with major companies like Uniper, Yara, and Keppel.

To support its green ammonia production, AM Green has secured 1,300 MW of round-the-clock renewable energy, with a 25-year fixed-price PPA with NTPC covering half of the supply, and the remainder provided by Gentari, Petronas’ renewable energy arm. This move is part of AM Green’s ambitious goal of reaching a production capacity of 5 million tonnes of green ammonia by 2030.

Incorporated by Greenko Group founders Anil Chalamalasetty and Mahesh Kolli, AM Green is strategically positioned to lead in India’s green ammonia market, targeting multiple locations nationwide to achieve its 2030 objectives.

BASF, headquartered in Germany, operates across segments like chemicals, materials, and agriculture solutions, with 2023 sales of €68.9 billion. (ET)

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