The Hydrogen Stream: AM Green, SJVN sign 4.5 GW renewables deal for green ammonia facilities  

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AM Green and SJVN Green Energy Ltd (SGEL), an arm of SJVN, have entered into a Memorandum of Understanding (MoU) for a long-term agreement for supply and sourcing of renewable energy. 

Under the agreement, SJVN Green Energy will supply 4.5 GW of carbon-free energy to AM Green’s upcoming green ammonia facilities in India. It will set up this capacity through solar and wind power, while AM Green will integrate it with pumped hydro storage to ensure a steady supply of green energy to AM Green facilities.

SJVN plans to execute the project in three phases, with the first phase delivering 1,500 MW within two years. This initiative is a major milestone for SJVN’s renewable energy expansion in India, supporting its goal of reaching 25,000 MW by 2030 and 50,000 MW by 2040.

AM Green, promoted by the founders of Greenko, targets to produce 5 million tons per annum (MTPA) of green ammonia by 2030, equivalent to about 1 MTPA of green hydrogen. This represents a fifth of India’s target for green hydrogen production under the country’s National Green Hydrogen Mission and 10% of Europe’s target for green hydrogen imports by 2030.

In October 2023, Gentari Sdn Bhd, through its wholly-owned subsidiary Gentari International Renewables Pte Ltd, signed an agreement with AM Green to jointly invest in phases in AM Green Ammonia Holdings BV (AMG Ammonia). Singapore’s sovereign wealth fund, GIC, is also an investor in AMG Ammonia.

AM Green has a strong pipeline of power offtake agreements, including NTPC Renewables and Gentari, to support its green hydrogen ambitions. With these agreements, AM Green is on a fast track for a final investment decision (FID) for its first 2 MTPA green ammonia project early this year, positioning itself ahead of other companies aiming for green ammonia capacity in India and globally.

AM Green, incorporated by the founders of Hyderabad-based Greenko Group, aims to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world. In India, AM Green is developing production capabilities for green molecules (green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels and various downstream high-value chemicals) for decarbonisation in hard-to-abate industries. The venture will also set up an international renewables and storage business and a JV for making electrolysers with John Cockerill of Belgium.

China University of Petroleum researchers have analyzed underground hydrogen storage in aquifers, depleted reservoirs, and salt caverns, focusing on hydrogen-microorganism interactions. They said in “Integration of underground green hydrogen storage in hybrid energy generation” that there is a need for geological analysis and hazard mitigation to ensure stable, affordable green hydrogen storage. Underground storage is seen as vital for managing seasonal energy demands, advocating hybrid energy systems to surpass standalone hydrogen storage limits.

Sungrow Hydrogen won the bidding for the “world’s largest green hydrogen, ammonia, and methanol integrated project.” The Chinese company will provide its 1000Nm³/h ALK hydrogen production system to the Songyuan Hydrogen Energy Industrial Park project in Jilin, China. “With $4.1 billion total investment, this project is expected to produce 110,000 tons of green hydrogen, 600,000 tons of green ammonia, and 60,000 tons of green methanol annually in the future,” said Sungrow Hydrogen.

HDF Energy said that the European Commission has approved French financial support for its industrial project in Blanquefort within the framework of the IPCEIs (Important Projects of Common European Interest). “The grant, worth up to 172 million euros, will be dedicated to the development and industrialization of high-power hydrogen fuel cells at HDF Energy’s plant near Bordeaux,” said the manufacturer of fuel cells and developer of large-scale hydrogen infrastructure, adding that the fuel cells will target the heavy maritime and rail mobility sectors, as well as electricity production for public power grids.

Shell Canada said that it has made a final investment decision (FID) for Polaris, a carbon capture project at the Shell Energy and Chemicals Park in Scotford, Alberta, Canada. It said the project aims to capture approximately 650,000 tons of CO2 annually from the Scotford refinery and chemicals complex.

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