German chemicals group BASF SE and India's AM Green have signed a memorandum of understanding (MoU) to explore and develop opportunities for low-carbon chemicals production using renewable energy in India. The partnership was announced during the Asia-Pacific Conference of German Business 2024 in New Delhi.
The MoU includes a non-binding letter of intent for the offtake of 100,000 tonnes of ammonia annually from AM Green's facilities across India. This ammonia will be produced utilizing renewable energy sources, including energy generated from pumped storage projects.
Under the agreement, the two companies plan to conduct feasibility studies to assess the production of low-carbon chemicals in India, including evaluating potential technologies. Markus Kamieth, chairman of the board of executive directors of BASF SE, expressed confidence in India's capacity to support low-carbon chemical production in collaboration with AM Green.
Mahesh Kolli, president of AM Green, emphasized that the partnership aims to supply key green molecule feedstocks to various downstream chemical and consumer industries served by BASF. AM Green, founded by the creators of Greenko Group, aims to achieve a green ammonia production capacity of 5 million tonnes per year by 2030.
