Yara pens ammonia supply deal with Indian energy firm

May 13, 2024, by Aida Čučuk

Ammonia distributor Yara Clean Ammonia, a subsidiary of Norway-based Yara International, and Greenko ZeroC, the green ammonia production arm of the India-based AM Green, have signed a term sheet for the supply of renewable ammonia from AM Green’s ammonia production facility in Kakinada, India.

Ammonia production facility and port infrastructure in Kakinada on East coast of India. Courtesy of Yara International

Yara said the term sheet and the subsequent offtake agreement specifically cover the long-term supply of up to 50% of renewable ammonia from Phase 1 of AM Green’s ammonia production facility in Kakinada, noting that for Yara, the renewable ammonia supply will contribute to producing low-emission fertilizer and for decarbonizing other industries like shipping and power, as well as energy-intensive industries.

The plant will produce and export renewable ammonia derived from round-the-clock carbon-free energy by 2027, Yara added, claiming that the renewable ammonia and other sustainable fuels from AM Green’s platform will be compliant with EU RFNBO and Renewable Energy Directive requirements.

Mahesh Kolli, President of AM Green, noted that the Indian company is delighted to partner with Yara Clean Ammonia to propel the transformation of various industries and several OECD economies, while Hans Olav Raen, CEO of Yara Clean Ammonia, stated: “The AM Green Kakinada project expands our portfolio of ammonia produced with renewable energy and consolidates Yara Clean Ammonia’s position as a reliable supplier of low-emission ammonia to established and emerging markets like fertilizer production, cracking of clean ammonia to hydrogen, shipping fuel, power generation, and other industrial applications.”

To note, Yara’s most recent activities include a memorandum of understanding (MoU) with Japan’s IHI Corporation for the potential collaboration in the clean ammonia value chain as well as the agreement with Indian renewable energy company ACME for the supply of ammonia produced in Oman with reduced CO2 emissions.

Furthermore, the Norwegian Directorate for Civil Protection (DSB) gave its approval for the construction of an ammonia bunkering facility at Fjord Base in Florø, planned by Yara Clean Ammonia, Norwegian ammonia bunkering startup Azane and Norwegian supply base Fjord Base.

As for AM Green, in late 2023, the company signed an MoU with Singapore-based Keppel Corporation to jointly explore opportunities to produce biogenic carbon-based sustainable fuels, such as bio and green methanol, second-generation (2G) ethanol and sustainable aviation fuel (SAF). Specifically, the two parties will jointly identify, evaluate and co-develop projects in Southeast Asia and the Middle East, which according to Keppel, can harness and aggregate at least one million tons of biogenic carbon dioxide (CO2) per year to be used for the production of sustainable fuels in AM Green’s plants.