In a significant move for India's industrial decarbonisation, homegrown energy transition platform AM Green and Japanese conglomerate Mitsui & Co. have inked a strategic pact. The companies signed a Memorandum of Understanding (MoU) on Thursday to explore wide-ranging collaboration across the energy transition sector, with a sharp focus on low-carbon aluminium.
Strategic Collaboration for a Green Metals Giant
The core of the agreement involves Mitsui assessing potential investments across the value chain of AM Green Aluminium Metals and Materials. This is a wholly-owned subsidiary of AM Green that is developing what the partners describe as the world's first fully integrated green aluminium production platform. The investment from Mitsui is intended to support the equity funding required for this groundbreaking facility.
"Under the MoU with Mitsui, the parties will assess potential investment in the AM Green Metals value chain. Mitsui investment will support equity requirements to build the world's first integrated green aluminium production platform," a joint statement from the companies confirmed.
Scope of the Partnership and Project Scale
The collaboration extends beyond mere investment. The two firms will explore a range of commercial opportunities, including offtake agreements for the low-carbon aluminium produced. This could involve Mitsui securing offtake rights linked to AM Green's green aluminium business. The partnership will also cover the supply of auxiliary materials necessary for the aluminium smelter and alumina refinery.
The project's ambition is vast. AM Green Metals is constructing a primary aluminium smelter with a capacity of 1 million tonnes per annum (MTPA). This will be supported by an integrated setup including 2 MTPA of alumina refining and associated mining capacity. The venture received a major boost in November when AM Green signed an agreement with the Andhra Pradesh government to establish a 1 MTPA green aluminium complex in the state.
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A defining feature of this initiative is its commitment to genuine green production. The planned aluminium smelter and alumina refinery are designed to be powered completely by renewable energy sourced from wind and solar projects. To ensure round-the-clock reliability, this renewable power will be firmed using pumped hydro storage technology.
In a related development that underscores the project's scale, Coal India signed an MoU in May to supply a massive 4.5 gigawatts of renewable power to AM Green for its various businesses, which include the green metals vertical.
Mahesh Kolli, founder of Greenko Group and AM Green, highlighted the partnership's strategic importance. "AM Green is building globally competitive platforms across molecules and materials to enable industrial decarbonisation at scale," he said. "We are pleased to partner with Mitsui to explore collaboration pathways that can accelerate low-carbon aluminium and expand market access for green products."
Broader Vision and Backing
AM Green was established by Greenko founders Anil Chalamalasetty and Mahesh Kolli as a dedicated platform for energy transition and decarbonisation. It holds stakes in Greenko's diverse portfolio, known as Power2X, which spans green ammonia, green hydrogen, green metals (including aluminium), and green chemicals. Its Bio2X business covers areas like 2G ethanol and Sustainable Aviation Fuel (SAF).
The backing is substantial. Greenko currently operates a renewable energy capacity of over 12 GW from solar, wind, and hydro sources. It is also in the process of building 100 GWh of single-cycle pumped hydro storage capacity across India by 2030.
AM Green's goals are aligned with national and global targets. The company is committed to producing 5 MTPA of green ammonia by 2030, which represents one-fifth of India's green hydrogen production goal and 10% of Europe's green hydrogen import target. The 1 MTPA green aluminium capacity is a cornerstone of this vision.
Mitsui & Co., a global trading and investment giant with operations in over 60 countries, brings immense expertise in energy, metals, infrastructure, and chemicals. This partnership aims to leverage Mitsui's global network to build long-term, sustainable value in the burgeoning green materials market.
