Posted on 19 Sep 2024
Germany-based RWE Supply & Trading plans to source up to 250,000 tonnes/year of green ammonia from India to supply its customers in Europe, Kallanish reports.
The company signed an MOU with AM Green Ammonia (AMG), a subsidiary of India’s AM Green Group. The preliminary agreement paves the way for an offtake agreement with delivery set to start in 2027.
In a joint statement on Wednesday, the firms said the green ammonia will be produced at AMG’s Kakinada and Tuticorin sites. The bulk of sales will come from the latter facility, with the remaining 50,000 t coming from Kakinada.
“RWE is committed to investing in hydrogen and its low-carbon derivatives to help industries achieve their climate goals. For this end, we are building strong supply chains with partners globally,” comments Costas Papamantellos, head of international hydrogen investments at RWE Supply & Trading. “Partnering with AMG allows us to secure green ammonia capacities at an early stage.”
Further details of the planned deal should be unveiled once a binding offtake is inked.
Yet, the companies say the ammonia will be compliant with the EU RFNBO standard, which means it is produced entirely using carbon-free energy sources.
RWE has not disclosed its potential customers and whether it would crack the green ammonia back into green hydrogen for domestic distribution.
Source:Kallanish
