Malaysian state-owned energy company Petronas [6033:MK] and Singapore’s sovereign wealth fund GIC Pte will invest in a large green ammonia manufacturing project in India, as reported by the Financial Times on October 30. The project will be developed by AM Green Ammonia, a joint venture (JV) founded by India’s major renewable power producer Greenko Group. Petronas will inject USD1.6bn in the JV in exchange for a 30% stake, while GIC, already the largest shareholder of Greenko, declined to disclose the value of its investment. Under the investment agreement, the JV will achieve a production capacity of 5 million tons of green ammonia annually from multiple locations across India by 2030. By the end of 2025, it will start exporting green ammonia to markets including Singapore, Japan, South Korea, and Germany.

India looks to become a major player in the burgeoning green hydrogen and ammonia industry by tapping into the country’s vast solar energy potential. AM Green Ammonia’s ambitious target of producing 5 million tons of green ammonia each year means that it needs roughly 1 million tons of green hydrogen supply a year by 2030. This accounts for 20% of India’s national target for green hydrogen production for 2030. As one of India’s largest wind and solar power producers and energy storage operators, Greenko aims to establish the world’s lowest cost hydrogen delivery platform with its renewable energy generation and storage capabilities. In February, Geenko also signed an agreement with German energy company Uniper [UN01:GR] to start delivering green ammonia to Germany in mid-2025.

Sources:

https://www.ft.com/content/c5005502-3850-4866-a597-4447f29cb5b5

https://www.bloomberg.com/news/articles/2023-10-30/gic-and-petronas-to-invest-in-green-ammonia-project-in-india

https://www.investmentmonitor.ai/news/petronas-to-invest-1-6-billion-in-green-ammonia-project-india/?cf-view