RWE to offtake RFNBO-compliant renewable ammonia from India

250,000 tons per year offtake

AM Green Ammonia (AMG) and RWE have signed an MoU in which AMG will supply renewable ammonia from its India-based production plants. According to the agreement, AMG will supply a total of up to 250,000 tons of renewable ammonia, the first 20% from its Kakinada site and the remaining 80% from its Tuticorin facility.

Both AMG facilities will be powered by wind, solar and hydroelectric power, and will produce ammonia compliant with the EU standards for Renewable Fuels of Non-Biological Origin (RFNBO). Thus far, the Kakinada site has been pre-certified by CertifHy for RFNBO compliance while the process is ongoing for its other facilities. With the AMG plants expected to become operational by 2027, the two parties will now look towards a firm long-term offtake agreement.

As we reported in May this year, phase one of the Kakinada project will have a capacity of 250,000 tons per-year, about half of which will be supplied to Yara Clean Ammonia.

AM Green Ammonia’s India pipeline constitutes a combined total production capacity of 4.6 million tons per year of ammonia. At full capacity, the Kakinada and Tuticorin sites will produce 2 and 1 million tons per year of renewable ammonia, respectively. The two other sites in AMG’s pipeline are Una in Himachal Pradesh which will have an annual capacity of 100,000 tons, and Kandla in Gujarat which will produce 1.5 million tons per year at full capacity.

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.

Costas Papamantellos, Head of International Hydrogen Investments at RWE Supply & Trading, in his organisation’s official press release, 18 September 2024

We are delighted to partner with RWE to propel the transformation of various industries and several OECD economies. 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.

Mahesh Kolli, Group President of AM Green, in RWE’s official press release, 18 September 2024