RWE and AM Green Ammonia Partner for Green Energy Supply
RWE and AM Green Ammonia Collaborate on Green Ammonia Supply
RWE has made a significant move to enhance its ammonia supply portfolio by signing a Memorandum of Understanding (MoU) with AM Green Ammonia B.V. This agreement, effective until deliveries commence, ensures up to 250,000 tonnes of green ammonia annually, starting in 2027.
Green Ammonia Production Details
The green ammonia generated by AM Green Ammonia will be sourced from their production plants located in India. Notably, this ammonia will meet the EU standards for Renewable Fuels from Non-Biological Origin (RFNBO), as outlined in the Renewable Energy Directive (RED III). The initial output of 50,000 tonnes will be produced at the Kakinada facility, while the remaining 200,000 tonnes will be sourced from the Tuticorin site.
Renewable Energy Commitment
AM Green Ammonia is dedicated to producing ammonia using entirely carbon-free energy sources such as solar, wind, and hydroelectric power. Their Kakinada facility has achieved pre-certification for RFNBO compliance, with other facilities currently undergoing certification processes.
Partnership Goals and Impact
According to Costas Papamantellos, Head of International Hydrogen Investments at RWE Supply & Trading, this partnership is pivotal for advancing RWE’s commitment to low-carbon hydrogen solutions. They are looking to solidify and expand their global supply chains to secure green ammonia capacities from this promising collaboration.
AM Green’s Innovative Position
Mahesh Kolli, Group President of AM Green, emphasized the company's ambition to facilitate the transformation of various industries. By aligning with innovative contracting, AM Green positions itself as a premier player in the clean energy sector, focusing on the production of low-cost green molecules, such as ammonia and hydrogen.
Future Prospects and Offtake Agreements
As the project progresses, deliveries of green ammonia from AM Green's facilities are set to kick off in 2027. An additional offtake agreement is planned, which will further detail the contractual terms between RWE and AM Green.
This collaborative effort represents a significant step toward enhancing the renewable energy landscape and achieving climate goals across industries, showcasing both companies' dedication to sustainability.
Frequently Asked Questions
What is the significance of the MoU between RWE and AM Green Ammonia?
The MoU ensures a long-term supply of 250,000 tonnes of green ammonia annually, enhancing RWE's renewable energy portfolio and commitment to sustainability.
Where will the green ammonia be produced?
The green ammonia will be produced at AM Green Ammonia's facilities in India, specifically at sites in Kakinada and Tuticorin.
What standards will the produced ammonia meet?
The produced ammonia will comply with EU standards for Renewable Fuels from Non-Biological Origin (RFNBO), as specified in the RED III legislation.
When is the expected commencement of deliveries?
Deliveries of green ammonia are anticipated to begin in 2027, marking a significant milestone in the partnership.
How does this partnership impact the renewable energy market?
This collaboration aims to strengthen the green ammonia market, supporting industries in their transition to low-carbon solutions and contributing to global sustainability efforts.
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