AM Green and DP World join hands to develop global green hydrogen supply chain

AM Green and DP World's partnership aims to create a zero-carbon supply chain. (Photo: Bloomberg)
AM Green and DP World's partnership aims to create a zero-carbon supply chain. (Photo: Bloomberg)

Summary

With advanced infrastructure and global partnerships, AM Green is poised to position India as a hub for green ammonia and hydrogen exports under the National Green Hydrogen Mission.

NEW DELHI : Greenko founders-backed AM Green has partnered with global logistics giant DP World to establish advanced logistics and storage infrastructure in India and overseas, aiming to accelerate exports of green hydrogen and green ammonia.

The partnership is aimed at enabling export of 1 million tonnes each of green ammonia and green methanol, both derivatives of green hydrogen, across the globe, said two people aware of the development.

Also read: Modi lays foundation stone of NGEL’s green hydrogen hub in Andhra Pradesh

"The agreement aims to develop port infrastructure across AM Green's net-zero industrial clusters to facilitate global exports and establish bunkering infrastructure across Dubai in UAE, India, and Southeast Asian countries for green ammonia and methanol supplied from AM Green plants," one of the two people cited above said.

The companies would also set up terminal infrastructure across the European Union, UAE, and other countries to provide the required zero carbon supply chain to support their transition to a low carbon economy.

Founded by Anil Chalamalasetty and Mahesh Kolli, the visionaries behind Hyderabad-based Greenko Group, AM Green aims to achieve a production capacity of 5 million tonnes per annum (MTPA) of green ammonia by 2030, equivalent to 1 MTPA of green hydrogen.

The company is spearheading multiple projects across India, leveraging renewable energy sources like solar, wind, and hydroelectric power to produce sustainable aviation fuel (SAF), green ammonia, green hydrogen, chemicals, and biofuels.

Also read: NTPC Green plans ₹30,000 cr-transmission network for AP green hydrogen hub

In August last year, the company announced the final investment decision for a 1 MTPA green ammonia plan in Kakinada, Andhra Pradesh on India’s eastern coast. The investment amount decided for the project was around ₹12,500 crore.

The Kakinada project, encompassing a green hydrogen generation unit and its conversion to green ammonia, will be situated at an existing urea plant, acquired by AM Green in early 2024. Production is slated to commence in the second half of 2026, with the majority of output destined for European markets.

AM Green has already secured offtake agreements for the project with major players such as Uniper, Yara, Keppel, and others, targeting a range of green hydrogen applications.

In October last year, Germany-based chemical major BASF had signed an agreement with AM Green to evaluate opportunities in the low-carbon chemicals space, said two people aware of the matter. Under the partnership, BASF would purchase 100,000 tonnes green ammonia annually from the Hyderabad-based company.

AM Green's latest partnership with DP World aligns with India's vision of becoming a global export hub for green hydrogen. Under the National Green Hydrogen Mission, the government aims to achieve an annual production capacity of 5 million tonnes of green hydrogen and significantly boost exports.

Also read: India’s green ambitions: A key milestone crossed and yet miles to go

DP World did not immediately respond to a mailed query. Mahesh Kolli, group president of AM Green declined to comment.

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