The 5 million tonnes of green ammonia produced is equivalent to approximately 1 million tonnes of green hydrogen and would represent 20 per cent of india's target for green hydrogen production by 2030
Malaysian energy giant Petroliam Nasional (Petronas) and Singapore's sovereign wealth fund GIC will invest in a project to produce five million tonnes of green ammonia annually in India by 2030.
Gentari, the renewable energy arm of Petronas and an affiliate of GIC, will invest in the project being developed by AM Green. AM Green has been established by the founders of the clean energy company Greenko Group, as stated in the companies' joint announcement.
"Gentari Sdn Bhd (Gentari), through its wholly-owned subsidiary, Gentari International Renewables Pte Ltd, has entered into an agreement with AM Green BV (AM Green) to jointly invest in phases into a green ammonia platform, AM Green Ammonia Holdings BV (AMG Ammonia)," the statement revealed.
AMG Ammonia has been established by the founders of Greenko with the involvement of an affiliate of a Singaporean investment entity, GIC.
"AMG Ammonia is projected to produce 5 million tonnes per annum of green ammonia using round-the-clock renewable energy by 2030. The platform aims to deliver green ammonia, which is currently the most mature and stable form of transporting hydrogen," the announcement highlighted.
However, the exact size of the investment has not been disclosed.
The production of 5 million tonnes of green ammonia is equivalent to roughly 1 million tonnes of green hydrogen, representing 20 percent of India's green hydrogen production target by 2030, or 10 percent of Europe's goal for imported renewable hydrogen.
"This size and capacity will position AMG Ammonia among the world's leaders in large-scale and cost-competitive green ammonia production," the statement asserted. "The first export of green ammonia from this platform is targeted for late 2025, with the intention to serve key OECD markets, including Germany, Japan, South Korea, and Singapore."
Gentari and AM Green each contribute complementary capabilities across the green hydrogen value chain, including renewable energy, electrolyzers, and ammonia production and marketing abilities.
The parties will make mutual investments in AMG Ammonia, demonstrating a strong commitment to realising the platform's potential and expanding their presence in the Asia Pacific and Europe, according to the statement.
"Following investments from Gentari, AM Green, and GIC, AMG Ammonia will be a fully funded platform for the targeted ammonia production plan. The platform is expected to invest in phases into projects at different locations in India, ensuring a competitive supply of hydrogen to the global market, which is essential for manufacturing and exporting green hydrogen in the region."
Sushil Purohit, Chief Executive Officer of Gentari, stated, "As Gentari expands our portfolio of clean energy solutions in Malaysia, the Asia Pacific, and beyond, we believe in the critical importance of industry-level collaborations that combine complementary strengths and unlock synergies.
This partnership with AM Green and GIC is a testament to our commitment to accelerating the global adoption of green hydrogen and making an impact in the pursuit of a net-zero future. In OECD, Southeast, and East Asian economies, green ammonia will address the decarbonization of industries such as power generation through co-firing as well as shipping."
Anil Chalamalasetty, founder of Greenko Group and AM Green, said, "We are delighted to partner with Gentari and GIC to venture into the global low-carbon green economy."
"This strategic partnership will work to accelerate net-zero targets in various industries and several OECD economies. A continuous focus on innovation combined with execution will ensure that our venture, AM Green, remains ahead of others in becoming a global clean energy transition solutions platform."
Gentari received advisory services from BofA Securities and Shardul Amarchand Mangaldas & Co. The completion of the transaction is subject to the fulfilment of customary conditions.