Yara Clean Ammonia Inks Renewable Ammonia Deal with AM Green

Yara Clean Ammonia, the leading global trader and distributor of ammonia, and Greenko ZeroC, the renewable ammonia production division of AM Green based in India, have entered into a term sheet agreement. This agreement entails the supply of renewable ammonia from Phase 1 of AM Green's ammonia production facility in Kakinada, India.

This term sheet, along with the subsequent offtake agreement, encompasses the provision of renewable ammonia for the long term, accounting for up to 50% of the output from Phase 1 of AM Green’s ammonia production facility in Kakinada. By 2027, the plant is set to generate and export renewable ammonia produced from continuous carbon-free energy sources.

AM Green's renewable ammonia and other sustainable fuels will adhere to the requirements of the EU RFNBO and Renewable Energy Directive. This supply of renewable ammonia to Yara Clean Ammonia will aid in the production of low-emission fertilizers and in the decarbonization efforts of industries such as shipping, power, and energy-intensive sectors.

Mahesh Kolli, President of AM Green, expressed his satisfaction with the partnership with Yara Clean Ammonia, stating, "We are pleased to collaborate with Yara Clean Ammonia in driving the transformation of numerous industries and OECD economies. Our unwavering commitment to innovation, coupled with effective execution, solidifies AM Green's position as a global leader in providing solutions for the clean energy transition, offering cost-effective green molecules such as hydrogen, ammonia, fuels, and other chemicals."

Hans Olav Raen, CEO of Yara Clean Ammonia, commented, "The AM Green Kakinada project broadens our range of ammonia production powered by renewable energy, solidifying Yara Clean Ammonia's role as a dependable provider of low-emission ammonia to both established and emerging markets. These include fertilizer production, clean ammonia cracking for hydrogen, shipping fuel, power generation, and various industrial applications."

Yara Clean Ammonia holds a distinctive position to facilitate the growth of the hydrogen economy, projected to expand significantly in the coming decades. Yara Clean Ammonia aims to further bolster its prominent global standing as the largest distributor of ammonia worldwide. This entails unlocking the potential of both green and blue value chains and spearheading the advancement of clean ammonia on a global scale. Drawing on Yara's extensive expertise in global ammonia production, logistics, and trade, Yara Clean Ammonia endeavors to seize opportunities for growth in low-emission shipping and power fuels, carbon-free food production, and industrial ammonia applications. Yara Clean Ammonia manages the world's largest ammonia network, comprising 15 ships. Leveraging Yara's resources, it also accesses 18 ammonia terminals and numerous production and consumption sites worldwide. In FY 2023, the company recorded revenues of USD 1.9 billion and EBITDA of USD 101 million. Yara Clean Ammonia is based in Oslo, Norway.