RWE has agreed to purchase up to 250,000 tonnes a year of green ammonia from India’s AM Green Ammonia (AMG), starting in 2027.
Under a Memorandum of Understanding (MoU), RWE will initially source 50,000 tonnes of the green hydrogen-based ammonia from AMG’s site in Kakinada, India, which reached a final investment decision last month (August).
Read more:FID secured for 1.3GW RFNBO-compliant green ammonia plant in India
The Kakinada plant is anticipated to produce one million tonnes of ammonia by 2026 before it’s scaled up to five million tonnes by 2030. The remaining 200,000 tonnes are expected to be delivered to RWE from the Tuticorin facility, which hasn’t passed FID yet.
The ammonia provided by the AM Green Group subsidiary will meet EU standards for Renewable Fuels of Non-Biological Origin (RFNBO). Ammonia produced at Kakinada has already been pre-certified for RFNBO compliance, while pre-certification for other facilities is underway.
“RWE is committed to investing in hydrogen and its low-carbon derivatives to help industries achieve their climate goals,” claimed Costas Papamantellos, Head of International Hydrogen Investments at RWE Supply & Trading.
“For this end, we are building strong supply chains with partners globally. Partnering with AMG allows us to secure green ammonia capacities at an early stage.”
Mahesh Kolli, Group President of AMG, said the partnership with RWE will “propel the transformation of various industries and several OECD economies.”
Kolli added, “This agreement emphasises AMG’s ability to align itself with an innovative and flexible contracting structure in line with commodity trading practices.”
RWE has not confirmed how it plans to use the ammonia supply, however, H2 View understands it could sell it directly to other customers.
RWE confirmed to H2 View that it plans to use the secured ammonia in its global portfolio before it aims to sell it to customers. The green hydrogen-based fuel will be delivered to RWE via ship.
