RWE has signed a memorandum of understanding with AM Green Ammonia (AMG) for the long-term annual supply of up to 250,000 tonnes (t) of green ammonia.
The ammonia, a derivative of hydrogen, will be sourced from AMG’s production sites in Kakinada and Tuticorin, India. Initially, 50,000t will be produced at the Kakinada site, with the remaining volume of up to 200,000t sourced from the Tuticorin facility.
The produced ammonia is expected to meet the EU’s RFNBO standards as defined in the Renewable Energy Directive (RED III). AMG’s facility in Kakinada has already been pre-certified for RFNBO compliance and pre-certification for other facilities is under way.
The facilities will be powered by carbon-free energy sources including solar, wind and hydroelectric power.
Deliveries of green ammonia from AMG’s sites are expected to start by 2027 with a subsequent offtake agreement between RWE and AMG to detail the contractual provisions.
RWE head of energy transition investments Costas Papamantellos commented: “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. Partnering with AMG allows us to secure green ammonia capacities at an early stage.”
AMG president Mahesh Kolli added: “We are delighted to partner with RWE to propel the transformation of various industries and several OECD economies.”
Germany, where RWE is based, recently approved an import strategy for hydrogen and its derivatives including ammonia, as local conditions are not favourable for hydrogen production. The national target is to meet 40–75 terawatt-hours of total clean hydrogen demand by 2030.
Power Technology’s parent company, GlobalData, reveals that capacity in the global ammonia industry was 240.38 million tonnes per annum in 2023 and will grow at an average annual growth rate of more than 5% by 2028.
