RWE Supply & Trading signed a Memorandum of Understanding (MoU) with AM Green Ammonia B.V., a subsidiary of AM Green Group, for the long-term supply of 250,000 tonnes of green ammonia per year from its plants based in India. The ammonia will be sourced from AMG’s production sites in Kakinada and Tuticorin, India. “Initially, 50,000 tonnes of green ammonia will be produced at the Kakinada site, with the remaining volume of up to 200,000 tonnes to be sourced from the Tuticorin facility,” the company said.
AMG’s ammonia manufacturing facilities will be powered entirely by renewable energy sources such as solar, wind, and hydroelectric power. The produced ammonia will meet EU standards for Renewable Fuels of Non-Biological Origin (RFNBO) as defined in the Renewable Energy Directive (RED III), said the company.
“We are delighted to partner with RWE to propel the transformation of various industries and several OECD economies. This agreement emphasizes AM Green’s ability to align itself with an innovative and flexible contracting structure in line with commodity trading practices,” said Mahesh Kolli, Group President of AM Green. “Continuous focus on innovation combined with execution reinforces AM Green’s leadership position as a global clean energy transition solutions platform for low-cost green molecules such as hydrogen, ammonia, fuels and other chemicals.”
Deliveries of green ammonia from AMG’s sites are expected to start by 2027. A subsequent offtake agreement between RWE and AMG will detail the contractual provisions, the company said.
“RWE is committed to investing in hydrogen and its low-carbon derivatives to help industries achieve their climate goals. For this end, we are building strong supply chains with partners globally. Partnering with AMG allows us to secure green ammonia capacities at an early stage,” said Costas Papamantellos, Head of International Hydrogen Investments at RWE Supply & Trading.
From: financialexpress
Financial News
