Coal India Ltd (CIL) has entered into an agreement to supply 4.5 GW of carbon-free power, in a phased manner, to AM Green’s upcoming green ammonia production facilities. It will supply power from a mix of solar and wind energy projects to be developed across India.
A formal, non-binding memorandum of understanding (MoU) was signed this week between the two entities for a long-term partnership for the supply and sourcing of renewable energy.
As part of the agreement, CIL will develop 2.5 GW to 3 GW of solar power capacity and 1.5 GW to 2 GW of wind power capacity, with an estimated total investment of around INR 25,000 crore. It is exploring wind power sites in the southern states and solar installations in high-irradiance states like Gujarat and Rajasthan.
AM Green will integrate the renewable power supply by CIL with pumped hydro storage to ensure a steady supply of green energy to its facilities.
“While coal remains our mainstay in meeting India’s expanding energy needs in the near term, our plans include a proactive role in building a greener and more sustainable future. This is in consonance with our commitment to become country’s integrated energy provider” said P M Prasad, CIL’s chairman.
AM Green, promoted by the founders of Hyderabad based Greenko, targets to produce 5 million tons per annum (MTPA) of green ammonia by 2030. This equals around 1 MTPA of green hydrogen and represents a fifth of India’s target for green hydrogen production under the National Green Hydrogen Mission.
Anil Chalamalasetty, founder of Greenko Group and AM Green, said, “We are delighted to partner with CIL on one of the world’s largest carbon-free, renewable energy supply contracts. We aim to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world”.
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