Gentari, the clean energy pision of Malaysia’s Petroliam Nasional Bhd or Petronas and AM Green, set up by the founders of Greenko, today announced the signing of definitive agreements together with an affiliate of GIC to produce 5 million tons per annum (MTPA) of green ammonia by 2030 – equivalent to about 1 MTPA of green hydrogen.

On Monday ET reported that Petronas, Singapore’s sovereign wealth fund GIC and the founders of Greenko Energy Holdings are investing $2 billion in AM Green. Of this, $1.5 billion will come from Petronas for a 30% stake. GIC of Singapore and thr Greenko founders are expected to invest in $250 million each in the green ammonia business.

The partnership, the companies said, will focus on the production of green ammonia across multiple locations in India, which is expected to accelerate efforts to achieve net zero targets in India as well as in OECD markets. Exports of green ammonia to key OECD markets, such as Germany, Japan, South Korea, as well as Singapore from this platform is expected to begin in late 2025.

“This strategic partnership will work to accelerate net zero targets of various industries and several OECD economies. Continuous focus on innovation combined with execution will ensure our venture, AM Green, remains ahead of others in becoming a global clean energy transition solutions platform,” said Anil Chalamalasetty, Founder, Greenko Group & AM Green.

The green ammonia will be produced by a unit of AM Green, known as AM Green Ammonia Holdings. Post-investment from Gentari, GIC and AM Green, the unit will be a fully funded platform that will invest, in phases, in the Indian regions of Andhra Pradesh, Tamil Nadu, Gujarat, Karnataka, and Himachal Pradesh.

The 5 MTPA of green ammonia will be equivalent to about 1 MTPA of green hydrogen, representing a fifth of India’s target for green hydrogen production under the country’s National Green Hydrogen Mission and 10% of Europe’s target for green hydrogen imports by 2030.

Achieving this scale of production will place the new venture among the world’s pioneers in large-scale and cost-competitive green ammonia production.

Sushil Purohit, Chief Executive Officer, Gentari, said,”This partnership is a testament to our commitment in accelerating green hydrogen adoption globally, to make an impact in the pursuit of a net zero future. In OECD, Southeast and East Asian economies, green ammonia will address the decarbonization of industries such as power generation, through co-firing, as well as shipping.”

Petronas has been looking to invest in India’s emerging green economy to persify its portfolio.

Petronas is targeting net zero carbon emissions by 2050. This July, Petronas’ clean energy solutions provider Gentari and renewable energy provider ReNew Energy Global announced the formation of a 50:50 joint venture encompassing 5 gigawatts of renewable capacity in India.

The collaboration follows Gentari’s initial investment for a 49% equity stake in ReNew’s 403-megawatt Peak Power project in May.

Petronas is also present in India through its lubricants business and an over two-decade-old 50:50 joint venture with Indian Oil Corporation for the import of LPG. In 2019, Petronas acquired Amplus Energy Solutions Pvt. Ltd, one of India’s largest rooftop solar power producers from New York-based I Squared Capital, for Rs 2700 crore expand its presence in the renewable energy segment.

The companies said the production of green ammonia by AM Green will be supported by the round-the-clock renewable energy supplied via offtake agreements with reputed counterparties and electrolyzers manufactured by another unit of AM Green (AM Green Technology & Solutions). With its presence across the value chain and with complementary growth engines in place, AM Green is well-positioned to claim and consolidate a position at the forefront of large-scale competitive solutions to decarbonize industries and economies across the world.

AM Green will also produce green molecules such as green methanol, green caustic soda, green chlorine, biofuels, and various downstream high-value green chemicals under its AM Green Molecules subsidiary. In addition, AM Green will also house a joint venture with John Cockerill of Belgium to manufacture electrolysers in its AM Green Technology & Solutions subsidiary; supplying about 6.5 GWs of electrolysers to AM Green Ammonia by 2030.

The completion of the transaction is subject to fulfillment of relevant and customary condition precedents. Citigroup Global Market India Pvt. Ltd and Bank or America were the financial advisors. Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas acted as the legal advisors.