Uniper Inks 500,000-Tonne Green Ammonia Deal with India's AM Green

A New Chapter in Global Green Energy Trade

Uniper Global Commodities SE, a leading European energy company, and India's AM Green Ammonia Private Limited have signed a long-term binding offtake agreement for the supply of green ammonia. This landmark deal, one of the first of its kind for an Indian company, establishes a significant green energy corridor between India and Europe, positioning India as a key exporter in the global transition to clean fuels. The agreement was formally exchanged in Ahmedabad, highlighting the strategic importance both nations place on clean energy cooperation.

Key Terms of the Agreement

Under the terms of the agreement, Uniper will purchase up to 500,000 tonnes of renewable ammonia per year from AM Green. The ammonia will be certified as a Renewable Fuel of Non-Biological Origin (RFNBO), ensuring it meets stringent European Union standards for green fuels. This certification is crucial for end-users in Europe seeking to comply with decarbonization mandates. The first shipments are scheduled to commence as early as 2028, sourced from AM Green's large-scale production facility currently under construction.

Sourcing from the Kakinada Plant

The green ammonia will be produced at AM Green's inaugural plant located in Kakinada, Andhra Pradesh. This facility is designed with an initial production capacity of one million tonnes per annum (MTPA), making it one of the few large-scale, RFNBO-compliant green ammonia plants currently being built worldwide. The project has already made substantial progress, with site work underway and major contracts awarded, keeping it on track for the 2028 supply start date.

Strategic Value for Uniper

For Uniper, this agreement is a cornerstone of its strategy to diversify its portfolio with renewable and low-carbon molecules. The deal provides its European customers with reliable, large-scale access to green ammonia, a critical component for decarbonizing several industrial sectors. Michael Lewis, CEO of Uniper, emphasized that green ammonia is a promising solution for reducing emissions in CO2-intensive industries like chemicals, fertilizers, and refining. Over time, it is also expected to play a role as a clean fuel for the shipping industry and as a carrier for green hydrogen.

A Milestone for India's National Hydrogen Mission

This export deal represents a significant achievement for India's National Hydrogen Mission, which aims to establish the country as a global hub for the production and export of green hydrogen and its derivatives. The partnership validates India's capacity to produce competitive green molecules for the global market. Anil Kumar Chalamalasetty, Founder of Greenko Group and AM Green, stated that the partnership is a milestone for India's role in the global energy transition, highlighting the company's ability to meet strict European compliance standards through its unique clean energy solutions.

The Technology Behind AM Green's Production

AM Green, backed by investors including Singapore's GIC, Abu Dhabi Investment Authority (ADIA), and Gentari, is leveraging innovative approaches to ensure a consistent supply of green ammonia. A key differentiator is the integration of pumped storage hydro projects to provide firm and dispatchable renewable energy. This strategy overcomes the intermittency of solar and wind power, enabling the ammonia plant to achieve a high annual plant load factor of over 85%. This reliability is essential for producing green ammonia at a competitive price point for large-scale adoption.

Key Deal Highlights

Geopolitical and Economic Implications

The formal exchange of the agreement in the presence of German Chancellor Friedrich Merz and Indian Prime Minister Narendra Modi underscores its geopolitical weight. It signals a deepening of the India-Germany partnership on climate action and industrial decarbonization. Economically, the deal helps India reduce its reliance on fossil fuel imports and strengthens its position as a reliable supplier in the global clean energy supply chain. Mahesh Kolli, Co-Founder of AM Green, noted that the partnership reaffirms their ability to deliver low-carbon ammonia at a price point suitable for global decarbonization efforts.

Broader Market Development

This agreement is part of a larger trend of growing interest in India's green ammonia potential. AM Green is developing a portfolio of plants across multiple Indian ports, including Tuticorin and Kandla, to serve global demand. The deal with Uniper, alongside other partnerships with companies like Yara Clean Ammonia, demonstrates strong international confidence in India's green energy sector. These developments are expected to create thousands of jobs, attract further private investment, and accelerate technology transfer in the country.

Conclusion: Paving the Way for a Green Future

The Uniper-AM Green agreement is more than a commercial transaction; it is a foundational step in building a scalable and reliable supply chain for green fuels between India and Europe. By securing a significant volume of RFNBO-compliant ammonia, Uniper strengthens Europe's energy security and decarbonization efforts. For AM Green and India, it marks a successful entry into the global green energy export market. As the Kakinada plant moves towards its 2028 commissioning date, this partnership will serve as a blueprint for future cross-continental collaborations in the green economy.