In a significant boost to India's green energy exports, AM Green Ammonia India Pvt Ltd, backed by the founders of Greenko, has entered into a major long-term agreement with German energy giant Uniper Global Commodities SE. The deal, signed on Monday, involves an annual offtake of up to 500,000 tonnes of green ammonia from India, with the first shipment expected as early as 2028.
A Strategic Partnership for Clean Energy
The binding agreement was exchanged in Ahmedabad during the visit of German Chancellor Friedrich Merz. The signatories were Michael Lewis, CEO of Uniper, and Anil Kumar Chalamalasetty, founder and group chairman of AM Green and Greenko Group. This pact aligns with a broader memorandum of understanding (MoU) on hydrogen integration in natural gas infrastructure exchanged between India and Germany on the same day.
The green ammonia will be sourced from AM Green's first 1 million tonne per annum (MTPA) plant, currently under construction in Kakinada, Andhra Pradesh. The project, which achieved its final investment decision of ₹12,500 crore in 2024, is part of a larger portfolio of green ammonia plants being developed in Kakinada, Tuticorin, and Kandla.
Decarbonizing European Industry
For Uniper, a major European energy company, this agreement is a strategic move to secure a diversified supply of renewable and low-carbon molecules for its customers. The company stated that renewable ammonia, certified as a Renewable Fuel of Non-Biological Origin (RFNBO), will serve as a crucial feedstock and hydrogen carrier to help decarbonize hard-to-abate sectors.
"This partnership is a milestone for India’s role in the global energy transition," said Anil Kumar Chalamalasetty. He emphasized that AM Green's ammonia is designed to meet stringent European RFNBO compliance standards, enabling industries like chemicals, fertilizers, and refining to significantly lower their emissions.
Uniper CEO Michael Lewis highlighted green ammonia's promise, noting its mature production process and low CO2 avoidance costs compared to other renewable molecules. "It is a key building block in our strategy to provide customers with reliable access to renewable and low carbon molecules at scale," Lewis stated.
Building a Global Green Ammonia Hub
AM Green Ammonia is a dedicated platform of the Greenko Group, focused on producing renewable hydrogen and converting it into ammonia. Its partner consortium includes Gentari, GIC, and the Abu Dhabi Investment Authority (ADIA). The Kakinada facility has also secured offtake agreements with other European entities like Yara and RWE.
This deal arrives as global demand for green hydrogen is still nascent. A recent International Renewable Energy Agency report noted challenges like high costs and slow infrastructure development but also pointed to signs of growth. The agreement positions India, which aims to produce 5 million tonnes of green hydrogen by 2030 under its National Green Hydrogen Mission, as a potential export hub for clean fuel to Europe.
The development follows news that alternative investment firm Stonepeak is conducting due diligence to acquire up to a 15% stake in AM Green's holding company in a potential deal valuing the equity at around $1.4 billion, underscoring the significant investor interest in India's green energy sector.
