Greenko's Ground-breaking Move: Uniper Partners with Renewable Energy Giant for Green Ammonia Supply

  • 19-Apr-2023
  • Journalist: Jaideep

New Delhi: Greenko Group, supported by GIC Holdings, Abu Dhabi Investment Authority and Japan's ORIX Corp, is planning to export green Ammonia to Uniper, Germany's biggest gas trader. This could mark the first ever export deal of emission-free fuel out of India. The green Ammonia is slated to be produced at a 1 mtpa facility in Kakinada, which is currently being established by Greenko ZeroC Private Limited. As per the recently signed MoU and Heads of Terms agreement between the two companies, they will hold exclusive negotiations for the supply of 250,000 tn per annum of green Ammonia to Uniper.

Against the background of an uncertain situation regarding Russian energy supplies to Europe due to the Ukraine conflict, Germany is exploring alternative energy sources to meet its domestic demands. A Memorandum of Understanding (MoU) and Heads of Terms were recently signed by Uniper and Greenko ZeroC Private Limited. As a result, Uniper is currently in talks for the exclusive acquisition of green Ammonia from Phase 1 of the Ammonia production facility of Greenko ZeroC located in Kakinada.

Uniper and Greenko have revealed plans to team up for the development of flexible renewable electricity, in addition to their collaboration on producing Green Ammonia. Their joint efforts could also extend to producing other Hydrogen products, such as E-Methanol and Sustainable Aviation Fuels. The production of Green Hydrogen, done through water electrolysis, can be paired with Nitrogen to create Green Ammonia, which is useful for energy storage and fertilizer production.

Greenko has recently entered a partnership with Keppel Corp. to explore building a 250,000-tonnes-per-year Green Ammonia facility, while also to establish a 2 GW-electrolyzer plant in India, one of the largest in the world, necessitating an investment of $500 million.

Greenko and Uniper have come to an agreement, outlined in a memorandum of understanding (MoU), to work towards a unique pricing, supply, and tenure structure for a 250,000-tonne-per-annum supply and purchase agreement for Green Ammonia or GASPA. The basis for this will be the Heads of Terms. The Kakinada project by Greenko is an export plant for green Ammonia that will help produce up to 1 million tonnes per annum (MTPA) of Green Ammonia by 2027.

India's government recently launched the National Green Hydrogen Mission, which has allocated ?19,700 crore towards green Hydrogen development. The country's goal is to produce 5 million tonnes of green Hydrogen by the year 2030, and it is encouraging exports of green Hydrogen to countries like Japan, South Korea, and Europe, making green Hydrogen an important part of India's energy transition.

According to recent reports, Indian companies are well-positioned to offer the most competitive green Hydrogen/green Ammonia due to their abundance and availability. With the combination of low-cost solar power and impressive engineering capabilities, India is an attractive destination for green Hydrogen production. Greenko, which boasts the largest operational clean energy portfolio in India at 7.5 GW, is gearing up to build a massive energy storage cloud platform of 100 GWh, the inclusion of 50 GWh storage capacity using pumped storage technology (PSP) is present.

Additionally, Ayana Renewable Power Pvt. Ltd. from National Investment and Infrastructure Fund (NIIF), has recently partnered with Greenko Group to store 6 GWh of power in hydro pump storage plants located in Pinnapuram, Andhra Pradesh.

Related Deals