AM Green and SJVN Sign Landmark 4500 MW Carbon-Free Renewable Energy Agreement

Environment

AM Green and SJVN Sign Landmark 4500 MW Carbon-Free Renewable Energy Agreement

AM Green and SJVN Green Energy Limited (SGEL), a wholly-owned subsidiary of SJVN, have entered into a Memorandum of Understanding (MoU) for a long-term renewable energy supply contract. The agreement, signed on June 26, 2024, in New Delhi, will see SGEL provide approximately 4500 MW of carbon-free energy to power AM Green’s upcoming green ammonia facilities. This initiative marks one of the world's largest carbon-free renewable energy supply contracts.

Under the terms of the agreement, SGEL will generate the required energy capacity through solar and wind power, while AM Green will integrate this with pumped hydro storage to ensure a consistent supply of green energy. The project will be executed in three phases, with the first phase delivering 1500 MW within two years. This agreement represents a significant investment by SJVN Green in a renewable energy project, supporting their goal of reaching 25,000 MW by 2030 and 50,000 MW by 2040.

The signing ceremony was attended by key executives including Sh. Akhileshwar Singh, Director of Finance, SJVN Ltd, Sh. Ajay Kumar Singh, CEO, SGEL, Sh. A M Jha, CFO, SGEL, Sh. Jitendra Yadhav, HOD (F&A), SJVN Ltd, Sh. B C Tripathi, Senior Advisor, AM Green, and Dharampal Reddy, AVP, AM Green.

Mahesh Kolli, Founder of Greenko Group and AM Green, expressed enthusiasm for the partnership: "We are delighted to partner with SJVN on one of the world’s largest carbon-free, renewable energy supply contracts. This partnership demonstrates AM Green’s leadership in the global clean energy transition, contributing to India’s ambition of becoming an exporter of sustainable, low-cost green molecules and accelerating industrial decarbonization globally."

Ajay Singh, CEO of SJVN Green, added: "We are elated to embark on this collaboration with AM Green, as it holds tremendous potential for accelerating the development of renewable assets in India. The project also marks SJVN’s foray into supplying power to private sector entities. With our ambitious capacity addition targets, SJVN is actively pursuing opportunities across the spectrum and is keen to take forward this arrangement with AM Green."

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 AM Green Ammonia Holdings BV (AMG Ammonia). Singapore's sovereign wealth fund, GIC, is also an investor in AMG Ammonia.

AM Green aims to produce 5 million tons per annum (MTPA) of green ammonia by 2030, equivalent to about 1 MTPA of green hydrogen. This represents a significant portion of India’s target for green hydrogen production under the National Green Hydrogen Mission and 10 percent of Europe’s target for green hydrogen imports by 2030. With power offtake agreements including NTPC Renewables and Gentari, AM Green is on track for a final investment decision (FID) for its first 2 MTPA green ammonia project early this year, positioning itself as a leader in green ammonia capacity in India and globally.