RWE and AMG Sign Green Ammonia Supply Agreement
Key Takeaways
- RWE Supply & Trading and AM Green Ammonia have signed an MoU for green ammonia.
- Up to 2,50,000 tonnes of green ammonia per year from AMG’s India facilities.
- AMG’s plants will use renewable energy and meet EU RFNBO standards.
RWE Supply & Trading has signed a Memorandum of Understanding (MoU) with AM Green Ammonia B.V. (AMG) for long-term green ammonia supply from AMG’s India plants.
This MoU covers up to 2,50,000 tonnes of green ammonia per year. The green ammonia will be produced at AMG’s Kakinada and Tuticorin plants in India, with 50,000 tonnes from Kakinada and up to 2,00,000 tonnes from Tuticorin.
AMG, a subsidiary of the AM Green Group, will use solar, wind and hydropower to produce the ammonia. The green ammonia will meet EU Renewable Fuels of Non-Biological Origin (RFNBO) standards as per the Renewable Energy Directive (RED III). The Kakinada plant is already RFNBO pre-certified, and certification for other plants is in process.
Green ammonia deliveries from AMG will start in 2027.
Costas Papamantellos, Head of International Hydrogen Investments at RWE Supply & Trading, said: ”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.”
Mahesh Kolli, Group President of AM Green, said: “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.”
Follow KnowESG's Company News for regular news and views.
Discover an extensive network of ESG providers here
Check out KnowESG's latest ESG Course updates
Source: RWE
