BASF and AM Green have signed a memorandum of understanding (MoU) to evaluate and develop business opportunities for low-carbon chemicals produced with renewable energy in India.
As well as jointly evaluating potential technologies, the agreement includes a non-binding letter of intent for the offtake of 100,000 tonnes per annum of green ammonia produced using purely renewable energy.
The partners said that the ammonia will meet EU standards for renewable fuels of non-biological origin (RFNBO), as defined by the EU’s Renewable Energy Directive. Some of AM Green’s facilities have already been pre-certified for RFNBO compliance through a voluntary certification scheme called CertifHy.
This news follows AM Green’s final investment decision, announced at the end of August, to build a one-million tonne per annum green ammonia facility in Kakinda, India, said to be one of the largest production plants of its kind in the world. The facility, which will also produce green hydrogen, is slated to become operational during 2026, and will contribute to AM Green’s ambition to produce five million tonnes per annum of green ammonia by 2030 across its four sites in India.
The agreement between BASF and AM Green was signed during the Asia-Pacific Conference of German Business 2024, held in New Delhi, India. Mahesh Kolli, Group President of AM Green, said: “AM Green’s vision of deepening capabilities in downstream value chains of green molecules is core to this partnership with BASF. The 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.”
AM Green’s agreement with BASF is part of a larger mover by the Indian company to meet the growing demand for greener chemicals. During September AM Green Ammonia said that its RFNBO Ammonia will be supplied to Germany-based RWE Supply and Trading. The ammonia will be sourced from AMG's planned production in Kakinada and existing production in Tuticorin, India. Initially, 50,000 tonnes of green ammonia will come from the new Kakinada facility, and the remaining volume, of up to 200,000 tonnes, will be sourced from production Tuticorin.
AM Green has also established local partnerships to progress India’s green transition. During early October the company said that it had signed an MoU with GAIL (India) focused on the long-term supply of carbon dioxide for eMethanol production and hybrid renewable energy projects. The eMethanol will be based on 350,000 tonnes per year of carbon dioxide feedstock produced by GAIL in its gas processing plants. GAIL also has an option to invest in the planned eMethanol project, which the partners say will create a strategic partnership supporting both companies’ objectives to promote sustainable energy solutions.
GAIL is among India’s leading natural gas transmission and distribution companies with transmission and distribution pipelines, processing, and petrochemicals plants and upstream oil and gas and LNG regasification terminals in India.
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