GIC and Petronas to invest in green ammonia project in India
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Exports of green ammonia from the GIC-backed project to markets, including Singapore, will start by late 2025.
PHOTO: GIC
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NEW DELHI – Singapore’s sovereign wealth fund GIC and a unit of Malaysian energy giant Petroliam Nasional (Petronas) will invest in a project that aims to produce five million tonnes of green ammonia a year from locations across India.
Gentari, which is Petronas’ renewable energy arm, and an affiliate of GIC will invest in the project being developed by AM Green, set up by the founders of Indian clean energy company Greenko Group, according to a joint statement issued by the companies.
AM Green will look to reach the full capacity target, equivalent to around one million tonnes of green hydrogen a year, by 2030, according to the statement.
Exports of green ammonia to markets such as Singapore, Japan, South Korea and Germany will start by late 2025.
Green ammonia and hydrogen are expected to play a bigger role in electricity generation, shipping and hard-to-abate industries like oil refining, chemicals, fertiliser and steel in the coming years. In India, which is aiming for net zero by 2070, AM Green joins heavyweights Adani Group and Reliance Industries in announcing ambitious plans for green hydrogen, which can be converted to ammonia for easier transportation.
“Achieving this scale of production will place the new venture among the world’s pioneers in large scale and cost-competitive green ammonia production,” the companies said.
Bloomberg reported in September that Petronas was nearing a deal to acquire a minority stake in the ammonia unit of AM Green for about US$1.6 billion (S$2.2 billion).
Citigroup Global Market India and Cyril Amarchand Mangaldas acted as financial and legal advisers to AM Green for the transaction. Gentari was advised by Bank of America Securities, the Malaysian company said in a separate statement. BLOOMBERG
