AM Green secures €585 million renewable ammonia supply deal with Germany

AM Green Ammonia has secured a 10-year agreement to supply renewable ammonia to Germany after being selected as the sole winner of the Asian lot in the latest H2Global auction conducted by HINT.CO GmbH (Hintco).

Under the agreement, Hintco will purchase renewable ammonia from AM Green for a minimum value of €585 million over 10 years. It may also purchase additional volumes offered by AM Green using proceeds generated from the resale of green ammonia in the European market.

The award followed a competitive bidding process in which AM Green’s offer was ranked first among the submissions received.

Renewable ammonia to be produced at Kakinada

The ammonia will be produced at AM Green’s Kakinada project in Andhra Pradesh, where an existing natural gas-based ammonia and urea complex is being converted into a renewable ammonia production facility using alkaline electrolysis technology.

The project will be supplied with round-the-clock renewable electricity supported by pumped-hydro storage. The power configuration is intended to meet European Union requirements for Renewable Fuels of Non-Biological Origin (RFNBO).

The first shipments to Germany are expected in 2029, with renewable ammonia planned to be exported through Kakinada Seaports, located adjacent to the production facility.

AM Green targets European and Asian markets

AM Green, promoted by the founders of Greenko Group, is developing low-carbon ammonia projects across India. The company has said the Kakinada project will support supplies to European and Asian markets.

“From Kakinada, we will deliver renewable ammonia to European and Asian customers, turning ambitious decarbonisation targets into real industrial emissions reductions. This is an important milestone for AM Green,” said Mahesh Kolli, Group President and Joint Managing Director of AM Green.

The company is targeting 5 million tonnes per year of green ammonia production capacity across its projects in India. Its Kakinada facility is being developed as a large-scale RFNBO-compliant production site.