German BASF and Indian AM Green have signed a non-binding letter of intent (LoI) for the offtake of 100,000 tons annually of ammonia produced exclusively with renewable energy, including energy from pumped storage projects from AM Green’s plants in different locations in India.
Furthermore, the two parties entered a memorandum of understanding (MoU) to jointly evaluate and develop business opportunities for low-carbon chemicals produced exclusively with renewable energy, and the corresponding value chains in India.
According to BASF, the ammonia set for offtake under this non-binding deal will meet EU standards for renewable fuels of non-biological origin (RFNBO) as defined in the Renewable Energy Directive (RED III).
Some of AM Green’s facilities have already been pre-certified for RFNBO compliance through the CertifHyTM voluntary certification scheme. Pre-certification for the company’s other facilities is currently underway.
Markus Kamieth, Chairman of the Board of Executive Directors of BASF, commented: “We are committed to the sustainable transformation of the industries we serve. We are convinced that India is the right place to explore low-carbon chemical production together with our partner AM Green.”
Mahesh Kolli, Group President of AM Green, stated: “We are delighted to partner with a global chemical leader like BASF to propel the green transformation in the industry. AM Green’s vision of deepening capabilities in downstream value chains of green molecules is core to this partnership with BASF. AM Green and BASF partnership envisages to cater to multiple chemical downstream and associated consumer industries by providing key green molecule feedstocks to produce chemicals, materials and products in the markets served by BASF.”
In 2024, AM Green also signed ammonia supply deals with German RWE Supply & Trading and Yara Clean Ammonia, a subsidiary of Norway-based Yara International. The deal with RWE outlines the supply of up to 250,000 tonnes of green ammonia per year from AM Green’s production sites in Kakinada and Tuticorin, while the deal with Yara covers the long-term supply of up to 50% of renewable ammonia from Phase 1 of the facility in Kakinada.