RWE Supply & Trading signs MoU with AM Green Ammonia BV for long-term supply of green ammonia from India

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The Germany-based RWE Supply & Trading has signed a Memorandum of Understanding (MoU) with AM Green Ammonia BV (AMG) for the long-term supply of green ammonia from its plants based in India.

AMG is a subsidiary of AM Green, incorporated by the founders of Hyderabad-based Greenko Group.

RWE Supply & Trading is establishing itself as a key player in the global hydrogen market. It focuses on green and blue hydrogen and its derivatives, such as ammonia.

According to a statement, the MoU outlines the supply of up to 250,000 tonnes of green ammonia annually. The ammonia will be sourced from AMG’s production sites in Kakinada and Tuticorin. Initially, 50,000 tonnes of green ammonia will be produced at the Kakinada site, with the remaining volume of up to 200,000 tonnes to be sourced from the Tuticorin facility.

Deliveries of green ammonia from AMG’s sites are expected to start by 2027. An offtake agreement between RWE and AMG will detail the contractual provisions and be signed subsequently.

The statement said 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.

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: “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.”