SJVN Ltd's green energy subsidiary is considering the development of 4.5 gigawatts (GW) of wind and solar parks in India to supply electricity for AM Green Ammonia India's ambitious green hydrogen production plans.
The companies have signed a Memorandum of Understanding (MoU) outlining potential long-term power off-take arrangements, with a definitive agreement expected soon, as disclosed in a stock exchange filing by SJVN.
Under the agreement, SJVN Green Energy Ltd aims to establish between 2.5 GW and 3 GW of solar parks and 1.5 GW to 2 GW of wind farms across three phases.
This capacity will ensure the supply of approximately 11,500 million kilowatt-hours (kWh) of green electricity annually to AM Green Ammonia's facility.
Located in Kakinada, Andhra Pradesh, the production complex will be built in two phases, initially producing one million tonnes of green ammonia per year, with plans to increase to five million tonnes by 2030, equivalent to one million tonnes of green hydrogen.
The collaboration intends to establish a commercial framework ensuring competitive tariffs and sufficient returns for SJVN's unit, potentially including dollar-denominated tariffs for contracted green electricity volumes, according to the press statement.
