India-based AM Green Group has reached an agreement to acquire Fortum Oyj's biorefining and biobased operations, alongside a commitment to invest USD 1 billion (EUR 896 million) in sustainable aviation fuel (SAF) production.
The deal involves AM Green Technology and Solutions BV acquiring a majority stake in Finland-based biorefining technology provider Chempolis Oy, which includes its subsidiary in India. The agreement was announced by both parties in separate statements.
Chempolis specializes in formico-technologies that facilitate the sustainable production of high-quality products such as bioethanol, biochemicals, and sulfur-free lignin from lignocellulosic feedstocks. This acquisition is intended to enhance AM Green's capacity to establish large-scale biorefineries, leveraging Chempolis's licensing model to utilize multiple feedstocks and produce green products aimed at decarbonizing aviation, fuels, chemicals, and other industrial sectors.
Founded by the creators of India's renewable energy company Greenko Group, AM Green aims to become a leading global producer of green hydrogen, green ammonia, and other green molecules. The planned investment will be spread out over the next several years, targeting the development of more than 500,000 tonnes of alcohol-to-jet (ATJ) SAF annually by 2027.
For Fortum, this sale aligns with its strategic review of its circular solutions businesses, allowing the company to concentrate on its core operations in the Nordics, which include carbon dioxide-free power generation, electricity sales, and district heating and cooling.
Fortum's statement noted that the strategic review continues for its remaining circular solutions businesses, which encompass turbine and generator services, battery recycling, and a UK-based waste-to-energy operation.
The transaction will result in Fortum selling its 37.4% stake in Chempolis and all associated biobased solutions businesses, along with its shares in a holding company that owns 40.3% of Assam Bio Ethanol Pvt Ltd in India. Additionally, Fortum will divest its biobased solutions business (Bio2X) to Chempolis as part of the agreement.
The deals remain subject to certain closing conditions, and specific financial details have not been disclosed.
