Yara Clean Ammonia, a subsidiary of Norway’s Yara International, and Greenko ZeroC, part of India’s AM Green, have signed a term sheet to supply renewable ammonia from AM Green’s Kakinada facility in India.
The term sheet and offtake agreement covers the long-term supply of up to 50% of renewable ammonia from Phase 1 of AM Green’s ammonia production site, which will produce and export renewable ammonia by 2027.
According to Yara, the ammonia will be used to produce low-emission fertiliser and for decarbonising shipping, power and other energy-intensive industries.
Mahesh Kolli, President of AM Green, said that the new deal will ‘propel the transformation’ of various industries and several OECD economies.
The sentiment was echoed by Hans Olav Raen, CEO of Yara Clean Ammonia, who said, “The AM Green Kakinada project expands our portfolio of ammonia produced with renewable energy and consolidates Yara Clean Ammonia’s position as a reliable supplier of low-emission ammonia to established and emerging markets like fertiliser production, cracking of clean ammonia to hydrogen, shipping fuel, power generation and other industrial applications.”
Aiming to develop one of the world’s largest green ammonia platforms, AM Green will ramp up capacity of its Kakinada project to five million tonnes per annum (mtpa) of green ammonia by 2030 – equivalent to 1 mtpa of hydrogen.
©Yara. Ammonia production facility and port infrastructure in Kakinada on East coast of India
Recent activities have seen Yara join forces with Japan’s IHI to explore ways to enhance marine transportation of clean ammonia that IHI aims to procure from India and other countries.
The company also signed a deal with Indian renewable energy company ACME for the supply of ammonia produced in Oman with reduced carbon dioxide emissions.
Equipped with the largest global ammonia network with 15 ships, Yara Clean Ammonia reported revenues and EBITDA for FY 2023 of $1.9bn and $101m.
Earlier this year, AM Green signed an MOU with Envision Energy International to partner in the manufacture of wind turbines for AM Green’s clean energy projects in India and to collaborate on green hydrogen projects.
In late 2023, the company signed an MOU with Singapore’s Keppel Corporation to explore production of biogenic carbon-based sustainable fuels, including bio and green methanol, 2G ethanol and sustainable aviation fuel (SAF).
India is among the world’s largest ammonia producers, representing about 8% of current global production.
In Tamil Nadu, India, a MOU signed in July 2022 outlines plans for a 1.1 mtpa ammonia production facility in Thoothukundi, powered by 5 GW of solar PV capacity and 1.5 GW of electrolyser capacity.
Similarly, in Odisha, a MOU signed in December 2022 details the establishment of a 1.1 mtpa ammonia production plant near Paradeep Port. In Karnataka, another MOU signed in June 2022 also aims for a 1.1 mtpa ammonia production facility.
