RWE Supply & Trading, part of Germany-headed global energy utility major RWE AG, has announced that it has signed a Memorandum of Understanding (MoU) with AM Green Ammonia B.V. (AM Green), a subsidiary of the AM Green Group, for the long-term supply of green ammonia from its plants based in India.
The MoU outlines the supply of up to 250,000 tonnes of green ammonia per year to be sourced from AM Green’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.
RWE is committed to investing in hydrogen and its low-carbon derivatives to help industries achieve their climate goals. To 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.
RFNBO compliant
AM Green’s ammonia manufacturing facilities will be powered entirely by renewable power 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).
AM Green’s facility in Kakinada has already been pre-certified for RFNBO compliance, and pre-certification for other facilities is underway.
Deliveries of green ammonia from AM Green’s sites are expected to start by 2027. A subsequent offtake agreement between RWE and AM Green will detail the contractual provisions.
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. 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 Mahesh Kolli, Group President of AM Green Group.
