RWE Agrees to Purchase Green Ammonia from AM Green Ammonia in India
Key Ideas
- RWE has signed an MoU with AM Green Ammonia to purchase up to 250,000 tonnes of green ammonia annually starting in 2027.
- AM Green Ammonia's Kakinada plant in India, with FID secured, will supply 50,000 tonnes initially and aims to scale up to one million tonnes by 2026 and five million tonnes by 2030.
- The green ammonia from AM Green Ammonia will meet EU standards for Renewable Fuels of Non-Biological Origin (RFNBO), with pre-certification already secured for the Kakinada facility.
- This partnership between RWE and AM Green Ammonia is viewed positively, with both companies emphasizing the importance of investing in low-carbon derivatives like green ammonia to support climate goals.
RWE has entered into a Memorandum of Understanding (MoU) with AM Green Ammonia (AMG) in India to procure up to 250,000 tonnes of green ammonia annually, starting from 2027. The agreement involves sourcing 50,000 tonnes from AMG's Kakinada facility, which recently received the final investment decision (FID). By 2026, the Kakinada plant aims to produce one million tonnes of ammonia and increase this to five million tonnes by 2030. An additional 200,000 tonnes will be supplied from AMG's Tuticorin facility, pending FID approval. The ammonia produced at the Kakinada site meets the Renewable Fuels of Non-Biological Origin (RFNBO) standards of the EU, with pre-certification already in place. RWE's commitment to investing in hydrogen and its derivatives aligns with the partnership, emphasizing the importance of green ammonia in achieving climate objectives. The collaboration is praised for building strong supply chains globally and supporting industry transformation. While RWE's specific usage plans for the ammonia remain undisclosed, potential routes include direct sales to other customers. The partnership signifies a step towards fostering sustainable practices and driving innovation in the energy sector.
Topics
South America
Renewable Energy
Sustainability
Supply Chain
European Union
Industry Transformation
Commodity Trading
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