Green Energy Boom: Malaysia's Petronas, Singapore's GIC & Greenko to Invest $2bn in AM Green Ammonia Under the largest foreign direct investment till date, AM Green Ammonia will produce 5mn tonnes of green ammonia by 2030, with operations across five Indian states, and will begin exporting it in the next two years.
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In a significant development towards green energy, Malaysia's Petronas and Singapore's GIC and India's Greenko are set to invest $2 bn in AM Green Ammonia Holdings, a company owned by Hyderabad-based Greenko Group to produce 5 million tons per annum (MTPA) of green ammonia by 2030. This is equivalent to about 1 MTPA of green hydrogen.
Of the entire sum, Malaysian state-owned energy company Petronas has invested $1.6bn in an Indian green ammonia venture, which is equivalent to 30 per cent stake in the company that will raise valuation of the AM Green Ammonia to approx. $5.5 billion. The production will take place across five Indian states, and the company will begin exporting it in the next two years.
Greenko also signed a MoU with German energy company Uniper for green ammonia supply in February this year. Its first delivery of green ammonia to Germany is scheduled for mid-2025
The current deal is of great significance for Malaysia's Petronas as it has target of meeting 30 per cent revenue contribution from non-traditional businesses by the end of this decade. Further, it has pledged to cap operational emissions to 49.5 million tonnes of carbon dioxide equivalent by 2024 in Malaysia, and achieve 25 percent absolute emissions reduction group wide by 2030 based on 2019 emissions data.
The agreement will also help Singapore as it has adopted a national hydrogen strategy.
What is green ammonia
An environment friendly alternative to traditional ammonia, it is produced using green hydrogen. It has the potential to reduce greenhouse gas emission and support industries including agriculture and transportation in achieving a more sustainable future.
Growing appetite for green energy
Green energy has been high on the agenda of the countries for a decarbonized future. Following this many energy companies are turning their heads towards it. In 2021, renewable energy firm ACME Group announced its partnership with the US-based KBR Technology for its USD 3.5-billion green hydrogen and green ammonia project in Oman. Under the contract, KBR will provide technology licence, engineering, proprietary equipment, catalyst and commissioning services for a plant to produce ammonia.
In September 2023, Adani Global, a wholly owned subsidiary of Indian energy major Adani Group, and Japan-based manufacturing and trading company Kowa Holdings Asia formed an equal joint venture (JV) for the marketing and sale of Adani's green hydrogen and ammonia in Japan, Taiwan and Hawaii.
Lately, on October 20, Avaada Group signed a memorandum of understanding (MoU) with Gopalpur Port Ltd to establish a green ammonia storage facility in Odisha. The aim of this strategic alliance was to create a state-of-the-art storage facility dedicated to storing green ammonia at the Gopalpur port, contributing to a greener future.
