AM Green and SJVN to Execute Major Carbon-Free Renewable Energy Contract

AM Green and SJVN Green Energy Limited (SGEL), a wholly-owned subsidiary of SJVN, have signed a Memorandum of Understanding (MoU) for a long-term renewable energy supply agreement.

On June 26, 2024, in New Delhi, SGEL agreed to supply approximately 4,500 MW of carbon-free energy to AM Green’s upcoming green ammonia facilities. This energy will be generated through solar and wind power, with AM Green utilizing pumped hydro storage to ensure a consistent green energy supply.

The agreement was signed in the presence of Sh. Akhileshwar Singh, Director of Finance, SJVN Ltd; Sh. Ajay Kumar Singh, CEO, SGEL; Sh. A M Jha, CFO, SGEL; Sh. Jitendra Yadhav, HOD (F&A), SJVN Ltd; Sh. B C Tripathi, Senior Advisor, AM Green; and Dharampal Reddy, AVP, AM Green.

SJVN plans to execute the project in three phases, with the first phase delivering 1,500 MW within two years. This initiative is a significant milestone in SJVN’s renewable energy expansion, supporting its goals of reaching 25,000 MW by 2030 and 50,000 MW by 2040.

AM Green, promoted by the founders of Greenko, aims to produce 5 million tons per annum (MTPA) of green ammonia by 2030, equivalent to about 1 MTPA of green hydrogen. This production target represents a fifth of India’s green hydrogen production goal under the National Green Hydrogen Mission and 10% of Europe’s green hydrogen import target by 2030.

Mahesh Kolli, Founder of Greenko Group & AM Green, stated, “We are delighted to partner with SJVN on one of the world’s largest carbon-free, renewable energy supply contracts. This partnership showcases AM Green’s leadership in the global clean energy transition, contributing to India’s ambition to become a major exporter of reliable, sustainable, and low-cost green molecules and derivatives, accelerating global industrial decarbonization.”

Ajay Singh, CEO of SJVN Green, commented, “We are excited to collaborate with AM Green, as it holds immense potential for accelerating renewable asset development in India. This project also marks SJVN’s entry into supplying power to private sector entities. With our ambitious capacity targets, SJVN is actively exploring opportunities and looks forward to advancing this arrangement with AM Green.”

In October 2023, Gentari Sdn Bhd, through its wholly-owned subsidiary Gentari International Renewables Pte Ltd, signed an agreement with AM Green to jointly invest in phases in AM Green Ammonia Holdings BV (AMG Ammonia). Singapore’s sovereign wealth fund, GIC, is also an investor in AMG Ammonia.

AM Green has secured power offtake agreements, including with NTPC Renewables and Gentari, to support its green hydrogen goals. With these agreements, AM Green is on track for a final investment decision (FID) for its first 2 MTPA green ammonia project early this year, positioning itself ahead of other companies in green ammonia capacity development both in India and globally.

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