BASF and AM Green sign MOU for green ammonia and low-carbon chemicals in India

BASF SE and AM Green B.V. have signed a memorandum of understanding (MoU) to explore opportunities in the production of low-carbon chemicals in India. The partnership also includes a non-binding commitment for BASF to purchase 100,000 tonnes of green ammonia annually from AM Green, produced exclusively with renewable energy sources.

This collaboration aims to support the sustainable transformation of the chemical industry, aligning with India’s National Green Hydrogen Mission. BASF’s Chairman of the Board of Executive Directors, Dr. Markus Kamieth, and Mahesh Kolli, Group president of AM Green, signed the MoU at the Asia-Pacific Conference of German Business in New Delhi, underscoring both companies’ dedication to decarbonisation.

The green ammonia produced by AM Green will adhere to EU standards for renewable fuels of non-biological origin (RFNBO), with pre-certification through the CertifHy™ scheme already underway for select facilities. This move aligns with BASF’s commitment to sourcing sustainable raw materials and AM Green’s goal to expand India’s green molecule production capacity to support carbon reduction in hard-to-abate industries.

Rely has been awarded an engineering, procurement, and construction management contract by AM Green for its two 1,500 tonne-per-day green ammonia complex in Kakinada, Andhra Pradesh. The project involves conversion of an existing grey ammonia facility to a green ammonia facility. The development has reached its final investment decision (FID) in August 2024 and will deliver one million tonnes per annum (Mtpa) of RED3 RFNBO compliant green ammonia, most of which will be exported to the European market.

The collaboration with German chemical company BASF underscores India’s role as a key hub for sustainable chemical production, said Kamieth. With AM Green, we can drive forward our shared commitment to renewable energy and low-carbon solutions, he said.