BASF and AM Green Partner to Boost Low-Carbon Chemicals and Green Ammonia Supply in India

Germany-based chemical giant BASF has entered into a strategic partnership with Hyderabad-based AM Green to explore opportunities within the low-carbon chemicals sector. Under this partnership, BASF is expected to purchase 100,000 tonnes of green ammonia annually from AM Green. This collaboration underscores the commitment of both companies to meet the growing demand for sustainable, low-emission chemical products.

Feasibility Studies and Technological Evaluations to Drive Green Chemistry in India

BASF and AM Green will jointly conduct feasibility studies to assess low-carbon chemical production in India and evaluate potential technological solutions. This endeavor is in line with global goals to reduce industrial carbon footprints and aligns with the European Union's stringent standards for renewable fuels of non-biological origin (RFNBO). With some of AM Green's facilities already pre-certified under these EU standards, the green ammonia supplied to BASF will meet these high benchmarks, strengthening BASF’s sustainable offerings worldwide.

AM Green’s Milestone Projects

AM Green has taken significant strides toward scaling its green ammonia production. In September, the company secured a final investment decision (FID) for its 1 million-tonne green ammonia project in Kakinada, Andhra Pradesh, backed by an investment of approximately ₹12,500 crore. This ambitious project is slated for completion by 2027, supporting global players like Uniper, Yara, and Keppel with consistent green hydrogen supplies.

The Kakinada project aligns with AM Green's vision of producing 5 million tonnes per annum (MTPA) of green ammonia by 2030, equivalent to 1 MTPA of green hydrogen. The company has also entered into an agreement with RWE Supply & Trading to provide 250,000 tonnes of green ammonia per year, beginning in 2027.

Round-the-Clock Renewable Energy Supply Secured for AM Green’s Green Ammonia Production

AM Green’s green ammonia production will leverage round-the-clock renewable energy. The company has secured 1,300 MW of carbon-free power, half of which will be supplied through a 25-year fixed-price power purchase agreement (PPA) with NTPC. The remaining capacity is expected to come from Gentari, the clean energy division of Malaysia’s Petronas. This partnership further advances Gentari and AM Green's joint commitment to produce 5 MTPA of green ammonia by 2030.

AM Green’s Vision for 2030 and BASF’s Role in Driving Sustainable Chemistry

Founded by Anil Chalamalasetty and Mahesh Kolli, the visionaries behind Greenko Group, AM Green aims to make India a global hub for green ammonia production with a 5 MTPA target by 2030. By establishing plants at various strategic locations across India, AM Green is paving the way for a sustainable chemical sector that reduces dependency on conventional fossil fuels.

As a multinational leader in chemicals, BASF's involvement will not only enhance India’s low-carbon chemical production capabilities but also support global markets in their transition towards sustainable energy sources. With a diversified portfolio spanning chemicals, materials, and industrial solutions, BASF recorded sales of €68.9 billion in 2023, highlighting its robust influence across industries.