Illustration; Courtesy of Uniper

Green ammonia offtake deal strengthens India-Europe supply corridor

Business & Finance

German energy player Uniper has sealed a renewable ammonia offtake agreement with AM Green Ammonia, a partnership among AM Green, Gentari, GIC and Abu Dhabi Investment Authority (ADIA).

Illustration; Courtesy of Uniper
Illustration; Courtesy of Uniper

Described as the first of its kind for an Indian company, the duo’s long-term binding offtake agreement for renewable ammonia, which is certified as a renewable fuel of non-biological origin (RFNBO), was exchanged between Michael Lewis, Commander of the Order of the British Empire (CBE) and CEO of Uniper, and Anil Kumar Chalamalasetty, Founder & Group Chairman of AM Green, in the presence of German Chancellor Friedrich Merz and Indian Prime Minister Shri Narendra Modi.

Chalamalasetty underlined:“This partnership is a milestone for India’s role in the global energy transition. AM Green’s renewable ammonia is designed to meet stringent European RFNBO compliance standards. This is achieved through our unique firm and dispatchable clean electricity solutions. It is enabling multiple downstream sectors including ammonia, aluminium, chemicals, and other energy-intensive industries lower their emissions significantly for India and now for the world.”

Thanks to this agreement, Uniper will offtake up to 500,000 tons per year from AM Green’s green ammonia projects, with the first shipment expected to happen as early as 2028 from the 1 mtpa under construction plant in Kakinada, Andhra Pradesh. The German player claims that the agreement represents a significant step forward in developing a diversified portfolio of renewable and low-carbon molecules for European customers.

Lewis highlighted:“Green ammonia stands out as one of the most promising solutions to decarbonise CO2-intensive production of chemicals, fertilizers and, through green hydrogen, also in refining. Importantly, it offers among the lowest CO2 avoidance costs compared to other renewable and low carbon molecules – thanks to its mature production process and the absence of carbon feedstock requirements.

“With clear, stable and credible rules – and with procurement and demand-side measures such as clear quotas for renewable molecules that reward verified CO2-abatement performance – we can accelerate the decarbonization while safeguarding competitiveness. We are proud to help establish one of the first large-scale supply corridors between India and Europe.”

As a feedstock and a potential hydrogen carrier, renewable ammonia is anticipated to help decarbonize industrial sectors such as chemicals, fertilizers, refining, and, over time, shipping. Uniper and AM Green Ammonia plan to continue working with certification bodies to ensure traceability and high integrity reporting for European end-users.

John Roper, CEO Middle East of Uniper Global Commodities, elaborated: “This landmark agreement shows that by aligning supply, certification and demand-side incentives, we can bring competitive, renewable molecules to European industry at scale – delivering real emission reductions.”

AM Green is developing a portfolio of green ammonia plants across Kakinada, Tuticorin and Kandla. The plant under construction in Kakinada, which crossed the final investment decision (FID) threshold in 2024, is scheduled to start supplying green ammonia in 2028.

The development is supported by a network of partners, including Casale, Air Liquide, Rely – a JV between Technip Energies and John Cockerill, Toyo, Gentari, NTPC Renewables and many others. The project is expected to avoid around 2 million tonnes of CO2 emissions annually once fully operational.

This green ammonia agreement comes months after Uniper struck a multi-year biomethane deal with Five Bioenergy.

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