Greenko Group, backed by GIC Holdings, Abu Dhabi Investment Authority and Japan’s ORIX Corp, plans to supply green ammonia to Germany’s biggest gas trader Uniper, in what could be the first export deal of the emission-free fuel out of India.
The green ammonia will be supplied from 1 million tonne per annum (mtpa) production facility in Kakinada that is being set up by Greenko Group’s Greenko ZeroC Private Limited.
The two firms on Tuesday inked a Memorandum of Understanding (MoU) and Heads of Terms agreement for exclusive negotiations to supply 250,000 tn per annum of green ammonia to the German major, reports Mint.
This comes in the backdrop of uncertainty over Russian energy supplies to Europe in the wake of Ukraine war. With the US led global coalition comprising of the G7 and the European Union (EU) imposing a price cap on Russian oil and gas, Germany is looking at diversifying its energy sourcing to cater to their own domestic demand.
“Uniper and Greenko ZeroC Private Limited, the green molecule production arm of the Greenko Group, today announced the signing of a Memorandum of Understanding (MoU) and Heads of Terms for Uniper to enter into exclusive negotiations for the offtake of green ammonia from Phase 1 of Greenko ZeroC’s ammonia production facility in Kakinada," the statement said.
“Aside from Green Ammonia, Uniper and Greenko also intend to collaborate on the deployment of similar flexible renewable electricity to other Hydrogen products such as E-Methanol and Sustainable Aviation Fuels," the statement added.
Green hydrogen is generated by breaking down water in an electrolyzer. The hydrogen produced can be combined with nitrogen to make green ammonia, to be used to store energy and in fertilizer manufacturing.
Greenko also recently partnered with Singaporean conglomerate Keppel Corp. to jointly explore setting up a 250,000 tonnes green ammonia production facility. Also, Greenko Group and Belgium’s John Cockerill are setting up a 2 GW electrolyzer factory in India, one of the world’s largest, through their joint venture, that will require an investment of $500 million.
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