BackGreenko-Keppel Corp JV plans green ammonia exports foray
This comes in the backdrop of the Indian government’s plan to allocate around ₹6,000 crore each for PLI schemes for electrolyzers and green hydrogen from the ₹20,000 crore green hydrogen mission
PremiumNew Delhi: In the first such green ammonia export foray out of India, Singaporean conglomerate Keppel Corp. will partner with GIC Holdings Pte Ltd, Abu Dhabi Investment Authority and Japan’s ORIX Corp. backed Greenko Group to jointly explore setting up a 250,000 tonne green ammonia production facility, according to a statement.
This comes in the backdrop of the Indian government’s plan to allocate around ₹6,000 crore each for production-linked incentive (PLI) schemes for electrolyzers and green hydrogen from the ₹20,000 crore green hydrogen mission, Mint reported earlier.
Keppel and Greenko inked the memorandum of understanding (MoU) to this effect in Singapore today. The event was attended by Singapore’s Minister for Trade and Industry Gan Kim Yong, and virtually by India’s petroleum and natural gas minister Hardeep Singh Puri.
Green hydrogen is produced by splitting water into hydrogen and oxygen using an electrolyzer powered by renewable energy sources such as wind and solar.
“Keppel Infrastructure Holdings Pte Ltd (Keppel Infrastructure) and Greenko Group (Greenko), through their subsidiaries, have signed a Memorandum of Understanding (MOU) to jointly explore green ammonia and renewable energy opportunities to meet the growing demand for low carbon energy in India, Singapore and globally," the statement said.
India’s total hydrogen demand is expected to touch 11.7 million metric tonnes (mmt) by 2029-30 from the current 6.7 mmt. The ministry of new and renewable energy has moved a cabinet note detailing green hydrogen consumption obligations, subsidies and standards for the pilots, and research and development requirements under the mission, the earlier Mint report said.
Keppel and Greenko will jointly identify and evaluate a portfolio of solar and wind energy projects, up to an installed capacity of approximately 1.3 GW, complemented by pumped hydro-storage, to power the green ammonia production facility, the statement added.
This also comes in the backdrop of Greenko Group and Belgium’s John Cockerill plan to set up a 2 GW electrolyzer factory in India, one of the world’s largest, through their joint venture. The factory will require an investment of $500 million.
“The transformation of India from a carbon-based fossil energy importer to an exporter of renewable energy-derived products like green hydrogen, green ammonia, and other green molecules, is the cornerstone of Greenko’s strategy for future growth. Along with Greenko’s Intelligent Renewable Energy Storage Platform (IRESP) and foray into electrolyser manufacturing, partnerships like these with Keppel are key enabling aspects in an accelerated execution of this vision," Greenko’s CEO and managing director Anil Kumar Chalamalasetty said in the statement.
Around 54% or 3.6 mmt of India’s annual hydrogen consumption of 6.7 mmt is utilized in petroleum refining and the rest in fertilizer production. This is, however, ‘grey’ hydrogen produced from fossil fuels such as natural gas or naphtha.
With the European Union coming up with the world’s first carbon tax; Indian steel and aluminium makers are working to reduce their carbon footprint through measures such as moving away from coal and requisitioning more green power as reported by Mint earlier. A case in point being Jindal Steel and Power recently signing an agreement with Greenko for supply of 1 GW of green energy.
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