AM Green Ammonia bagged the Asian lot in the second round of the H2Global tender to supply green ammonia to Germany. The company bagged a ten-year contract with a value of at least €585 million, strengthening India’s position as a potential major supplier of renewable ammonia to European markets. The German government funds the H2Global scheme, which aims to accelerate the development of international markets for renewable hydrogen and its derivatives. Under the arrangement, German intermediary Hintco will purchase the green ammonia from producers and resell it to European customers. The latest agreement builds on AM Green’s growing presence in the German market. Earlier, the company signed an agreement with Uniper to supply 500,000 tonnes of green ammonia annually and also entered into supply agreements with RWE and BASF.
Green Ammonia to Come from Kakinada Plant
AM Green will produce the contracted ammonia at its Kakinada plant in Andhra Pradesh. The company is converting an existing facility that previously used natural gas to produce ammonia and urea. However, the upgraded facility will use electrolysis to produce the hydrogen required for ammonia production. The resulting green ammonia will need to meet European requirements for Renewable Fuels of Non-Biological Origin (RFNBO). The project will therefore support the production of renewable ammonia using green hydrogen while helping reduce the carbon intensity of ammonia production.
First Shipments Expected in 2029
AM Green plans to begin deliveries to Germany in 2029, with shipments originating from the port located adjacent to the Kakinada facility. The contract value could rise beyond €585 million. This is because Hintco can use revenue generated from reselling the ammonia in the European market to purchase additional volumes under the terms of AM Green’s offer. The H2Global model aims to address the price gap between the cost of producing renewable hydrogen derivatives and the prices that industrial users are currently prepared to pay. Through long-term purchase agreements and subsequent auctions, the mechanism provides greater investment certainty for producers while supporting reliable supplies for European buyers.
India Strengthens Green Ammonia Export Potential
Timo Bollerhey, Managing Director of Hintco and co-founder of H2Global, said long-term contracts provide producers such as AM Green with the investment certainty needed to scale production while ensuring reliable supplies for European customers. Meanwhile, Mahesh Kolli, Chairman of the AM Green Group, said the latest award demonstrates India’s ability to supply renewable ammonia at an industrial scale and competitive prices. He added that production from Kakinada will enable AM Green to serve customers across Europe and Asia, helping convert decarbonisation targets into tangible reductions in industrial emissions. As reported by hydronews.it, the H2Global contract marks another significant step for India’s green hydrogen and green ammonia industry, while strengthening the country’s role in the emerging global clean-energy supply chain.
