GAIL (India) Ltd (GAIL), a Maharatna Central Public Sector Enterprise and a leading natural gas transmission and distribution company, and the Netherlands-headed AM Green B.V. (AMG), a leading energy transition solutions provider, have signed a Memorandum of Understanding (MoU) to explore projects advancing sustainable energy solutions in India.
The partnership focuses on the long-term carbon dioxide (CO2) supply for hybrid renewable energy projects, and eMethanol production and exploration across India.
In line with the MoU, both parties envision jointly exploring the setting up of up to 2.5 GW of solar/wind hybrid renewable projects across India.
The hybrid solar/wind projects combined with Greenko Group’s upcoming pump storage projects are poised to supply 24/7 power to the end users including a proposed electro-fuels (eFuels) project.
The parties envisage undertaking studies for a long-term supply of around 350,000 tonnes per annum of CO2 generated by GAIL in its gas processing plants to produce eMethanol.
GAIL shall also have an equity option to invest in the proposed eMethanol project, ensuring a strategic partnership that supports both companies’ objectives in promoting sustainable energy solutions.
The signing of this MoU with AM Green underscores our commitment to pioneering sustainable energy solutions. By facilitating the supply of CO2 for eMethanol production, we are taking a proactive approach to reduce carbon emissions and support alternative fuel development. The development of renewable energy projects will support reducing the carbon footprint of the country and advancing India’s transition to a greener energy landscape. The partnership between GAIL and AMG is set to augment technological innovation in India while promoting economic growth and environmental sustainability, said Rajeev Singhal, Director of Business Development at GAIL.
Aligned with green hydrogen strategy
AM Green’s production of green ammonia across multiple locations in India will accelerate its target to achieve 5 million tonnes per annum of green ammonia capacity by 2030, and its efforts to achieve net zero targets in India and OECD markets.
This will be equivalent to about 1 million tonnes per annum of green hydrogen, representing a fifth of India’s target for green hydrogen production under the country’s National Green Hydrogen Mission and 10 percent of Europe’s green hydrogen imports by 2030.
AM Green will also establish large-scale biorefineries that utilize multiple feedstocks and produce high-value green products enabling global decarbonization in aviation, fuels, chemicals, and other industrial sectors.
We are delighted to partner with GAIL on one of the world’s largest carbon-free, renewable energy supply contracts. This partnership demonstrates AM Green’s emerging leadership position as a global clean energy transition solutions platform while contributing to India’s ambition of emerging as an exporter of reliable, sustainable, and lowest-cost green molecules and their derivatives accelerating industrial decarbonization globally. The production of green methanol shall also help in the decarbonization of hard-to-abate sectors like shipping, steel, and cement, said Mahesh Kolli, Group President of AM Green.
