Malaysia’s Gentari Sdn. Bhd.*, through its subsidiary Gentari International Renewables Pte Ltd., has signed an agreement with AM Green BV, a Greenko Group subsidiary, to jointly invest in Green Ammonia facilities to be developed in India. These facilities will be developed by AM Green Ammonia Holdings BV (AMG Ammonia).
AMG Ammonia has been established by the founders of Greenko Group, and Singapore government-owned wealth fund, GIC, is one of the investors in AMG Ammonia.
*Gentari Sdn Bhd. is a clean energy subsidiary of Malaysia’s Petroliam Nasional Bhd. (Petronas).
Investment to be Made in Phases, Gentari to Purchase Equity in AMG Ammonia
Gentari specified in its release that investment in AMG Ammonia will be made in a phased fashion. Gentari will pick up equity in AMG Ammonia with its investment.
The scale of this investment has been reported to be between USD 1.5 billion to USD 2 billion by different news portals, even as Gentari’s official release does not specify the investment amount.
As per an article published by mint dated 30th October 2023, Gentari and GIC Holdings will be investing a total of USD 1.75 billion (14,583 crore) in AM Green Ammonia Holdings. Out of the total amount, Gentari will invest USD 1.5 billion in AMG Ammonia and will hold 30% shares of the company. The remaining 70% equity in AMG Ammonia will be held by AM Green and GIC. Moreover, Mint has reported GIC’s investment in AMG Ammonia to be USD 250 million.
AMG Ammonia Targets 5 MMTPA Green Ammonia Production by 2030
AMG Ammonia targets to achieve 5 Million Metric Tonnes Per Annum (MTPA) production capacity of Green Ammonia by 2030. AMG Ammonia Holdings will set up Green Ammonia plants in Andhra Pradesh, Gujarat, Tamil Nadu, Himachal Pradesh, and Karnataka for this purpose.
Green Ammonia to be Produced to Carry Green Hydrogen
Transportation of Green Hydrogen is a cumbersome task and is fraught with safety hazards and material losses. Green Ammonia can be used as a carrier for Green Hydrogen. At the destination, Ammonia is cracked to release Hydrogen and Nitrogen.
Gentari’s release stated that Green Ammonia is “presently the most mature and stable form of transporting hydrogen”. On average, 1 tonne of Ammonia yields 0.18 tonne of Hydrogen.
“The 5 MTPA of green ammonia produced is equivalent to approximately 1 MTPA of green hydrogen, and would represent 20% of India’s target for green hydrogen production by 2030”, mentioned Gentari’s release.
Commenting on this collaboration, Mr. Sushil Purohit, Chief Executive Officer of Gentari, said, “This partnership with AM Green and GIC is a testament to our commitment in accelerating green hydrogen adoption globally, to make an impact in the pursuit of a net zero future”.
India to Export Green Ammonia to OECD Markets
Export of Green Ammonia through these facilities is expected to commence by late 2025 and will address the demands of markets in Organisation for Economic Co-operation and Development (OECD) countries.
Speaking about this development, Mr. Sushil Purohit, Chief Executive Officer of Gentari, said, “…In OECD, Southeast and East Asian economies, green ammonia will address the decarbonisation of industries such as power generation, through co-firing, as well as shipping.”
Mr. Anil Chalamalasetty, founder of Greenko Group and AM Green, said, “This strategic partnership will work to accelerate net zero targets of various industries and several OECD economies. Continuous focus on innovation combined with execution will ensure our venture, AM Green, remains ahead of others in becoming a global clean energy transition solutions platform”.
About Greenko Group: Greenko was founded in 2004, and is majorly owned by Singapore’s GIC. The company has an installed power generation capacity of 7.5 GWDC across 15 states in India.
About Gentari Sdn. Bhd.: Gentari Sdn. Bhd. Was established in 2022, and is the clean energy subsidiary of Malaysian energy giant, Petronas. The company’s areas of focus include Renewable Energy, Electric Vehicles, Green Hydrogen and Ammonia.