RWE Supply & Trading has signed a Memorandum of Understanding (MoU) with AM Green Ammonia (AMG) for the long-term supply of green ammonia from its plants in India with deliveries slated from 2027.
It outlines the supply of up to 250,000 tonnes of green ammonia per year.
The ammonia will be sourced from AMG’s production sites in Kakinada, Andhra Pradesh, and Tuticorin. Initially, 50,000 tonnes of green ammonia will be produced at the Kakinada site, with the remaining volume to be sourced from Tuticorin.
AMG is a subsidiary of the AM Green Group. AMG’s ammonia manufacturing facilities will be powered entirely by carbon-free energy sources such as solar, wind, and hydroelectric power.
The produced ammonia will meet EU standards for Renewable Fuels of Non-Biological Origin (RFNBO) as defined in the Renewable Energy Directive (RED III). AMG’s facility in Kakinada has already been pre-certified for RFNBO compliance. Pre-certification for other facilities is underway.
A subsequent offtake agreement between RWE and AMG will detail the contractual provisions.
AM Green Ammonia recently achieved Final Investment Decision (FID) for its Kakinda project. The company is targeting production capacity of 5 million tonnes per annum (mtpa) of green ammonia by 2030, equivalent to about 1 mtpa of green hydrogen.
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. For 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 this agreement emphasises AM Green’s ability to align itself with an innovative and flexible contracting structure in line with commodity trading practices.
He said, “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.”
