Yara Clean Ammonia and Greenko: renewable ammonia term sheet signed
By on May 27, 2024
Offtake from phase one of the Kakinada project
Click to learn more. The Nagarjuna Fertilizers and Chemicals Limited complex in Kakinada, which will be acquired and retrofitted for renewable hydrogen and ammonia production. Source: Yara.
Beginning in 2027, Greenko ZeroC will produce hydrogen and ammonia utilising “round-the-clock” renewable electricity at its production facility in Kakinada, southern India. Greenko ZeroC is the “green ammonia production arm” of AM Green, itself a Greenko spinout focused on the production of electrolytic hydrogen and derivatives.
Fifty percent of phase one production will be supplied to Yara Clean Ammonia for further trade and distribution (phase one will reportedly produce up to 250,000 tons per year). The offtake agreement covers “long-term supply” of ammonia, which will be compliant with RFNBO and Renewable Energy Directive requirements from the EU.
We are delighted to partner with Yara Clean Ammonia to propel the transformation of various industries and several OECD economies. 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, President of AM Green in Yara’s official press release, 13 May 2024
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 fertilizer production, cracking of clean ammonia to hydrogen, shipping fuel, power generation, and other industrial applications.
Hans Olav Raen, CEO of Yara Clean Ammonia in his organisation’s official press release, 13 May 2024
The Kakinada project will be based at an existing urea and chemicals manufacturing complex: Nagarjuna Fertilizers and Chemicals. A series of transactions is still underway to acquire the physical assets and structure ownership, after which point retrofits can begin to enable electrolytic hydrogen production, and subsequently renewable ammonia. The existing complex also features docking, loading and export infrastructure.
Greenko continues to build momentum in the space:
- In February, Greenko was successful in government subsidy auctions for both hydrogen production and electrolyser manufacturing.
- In partnership with John Cockerill, Greenko will establish an electrolyser giga-factory, also in Kakinada.
- And in partnership with Gentari (the clean energy arm of Malaysian energy giant Petronas), and Singapore’s sovereign wealth fund GIC, Greenko will develop a production portfolio of 5 million tons per year of ammonia across several Indian states.