New Delhi: BASF and AM Green B.V. have signed a memorandum of understanding (MoU) to jointly evaluate and develop business opportunities for low-carbon chemicals produced exclusively with renewable energy in India.
The MoU was signed by Markus Kamieth, chairman of the board of executive directors of BASF SE, and Mahesh Kolli, group president of AM Green, during the the Asia-Pacific Conference of German Business 2024 in New Delhi, said a joint statement from the companies.
Mint first reported on Sunday that the both the companies have tied up in the low-carbon chemicals space and offtake of green ammonia.
Under the MoU, BASF and AM Green intend to conduct feasibility studies on low-carbon chemicals production in India including a joint evaluation of potential technologies. The cooperation also includes a non-binding letter of intent for the offtake of 100,000 tonnes annually of ammonia produced exclusively with renewable energy including energy from pumped storage projects from AM Green’s plants in India.
‘Ammonia to meet EU standards’
The statement said that the ammonia will meet European Union’s (EU) standards for renewable fuels of non-biological origin (RFNBO) as defined in the Renewable Energy Directive (RED III). Some of AM Green’s facilities have already been pre-certified for RFNBO compliance through the ‘CertifHyTM’ voluntary certification scheme. Pre-certifications for AM Green’s other facilities are currently underway.
“We are committed to the sustainable transformation of the industries we serve. We are convinced that India is the right place to explore low-carbon chemical production together with our partner AM Green,” said Kamieth.
Kolli said, “We are delighted to partner with a global chemical leader like BASF to propel the green transformation in the industry. AM Green’s vision of deepening capabilities in downstream value chains of green molecules is core to this partnership with BASF.”
Kolli added that the partnership between AM Green and BASF envisages to cater to multiple chemical downstream and associated consumer industries by providing key green molecule feedstocks to produce chemicals, materials and products in the markets served by BASF.
BASF operates in about six segments including chemicals, materials, industrial solutions, surface technologies, nutrition & care and agricultural solutions. BASF generated sales of €68.9 billion in 2023.
Its shares are traded on the stock exchange in Frankfurt and as American Depositary Receipts in the US.
Incorporated by the founders of Hyderabad-based Greenko Group, Anil Chalamalasetty and Mahesh Kolli, AM Green aims to reach a production capacity of 5 MTPA of green ammonia by 2030, which is about 1 mtpa of green hydrogen.
In September, the company tied up with RWE Supply & Trading of Germany to supply green ammonia which it plans to supply by 2027, wherein it would supply 250,000 tonnes of the green molecule annually.
It has also secured offtake agreements for the project with major players such as Uniper, Yara, Keppel, and others, targeting a range of green hydrogen applications.
