Greenko ZeroC to supply renewable ammonia to Norway’s Yara

Yara will use green ammonia from Greenko to produce low-emission fertilizers as well as towards low-carbon emissions in industries such as shipping and power.

Greenko ZeroC, the green ammonia production arm of renewable energy company AM Green, will supply green ammonia to Yara from the first phase of its project in Kakinada, Andhra Pradesh.

This term sheet and the subsequent offtake agreement covers the long-term supply of up to 50% of renewable ammonia from Phase 1 of AM Green’s Kakinada facility, the companies said in a statement.

AM Green is developing a mega green ammonia facility in Kakinada starting with a production capacity of 1 million tonnes per annum, with plans to ramp up the capacity to 5 million tonnes per annum by 2030.

The plant is expected to produce and export renewable ammonia by 2027.

Euro-compliant

Renewable ammonia and other sustainable fuels from AM Green’s platform will be compliant with the European Union’s renewable fuels of non-biological origin, or RFNBO, and other renewable energy directives. 

Yara, with its experience within global ammonia production, logistics and trade, is working towards capturing growth opportunities in low-emission fuel in the shipping and power industries, as well as for carbon-free food production and supplying renewable ammonia for industrial applications.

Yara Clean Ammonia operates the largest global ammonia network with 15 ships and has access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world.

“The AM Green Kakinada project expands our portfolio of ammonia produced with renewable energy,” Hans Olav Raen, chief executive of Yara Clean Ammonia, said in the statement.

Also read | India’s first green hydrogen tender meets a chaotic end

AM Green, incorporated by the founders of Hyderabad-based Greenko Group, Anil Chalamalasetty and Mahesh Kolli, aims to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules.

“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,” said Kolli, president of AM Green.

A Belgian JV

In India, AM Green is developing production capabilities for green molecules including green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels and various downstream high-value chemicals for decarbonization. 

The venture will also set up an international renewables and storage business and a joint venture for making electrolyzers with Belgium-based engineering group John Cockerill.

In an interview to Mint in February, Francois Michel, chief executive of John Cockerill, said the company aimed to make its electrolyzer plant, being developed along with Greenko in the country, a hub for exports. The group also intends to venture into defence manufacturing.

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Published: 13 May 2024, 12:24 PM IST