GAIL and AM Partner for the Development of Renewable Projects
GAIL (India) Limited has entered into a strategic agreement with AM Green (AMG) to develop 2.5GW of renewable energy projects across India, aimed at producing green hydrogen, ammonia, and methanol.
This partnership, formalised under a Memorandum of Understanding (MoU), signifies a major step towards India’s ambitions of becoming a key player in green energy production and export.
The renewable projects will involve a combination of solar and wind power, creating hybrid solutions to power the production of green chemicals, which can be exported globally.
The renewable energy facilities will be integrated with Greenko’s Pump Storage projects, ensuring a round-the-clock power supply for end users.
Greenko is AMG’s parent company, and this collaboration is expected to enhance the production of hydrogen-based ammonia and methanol, as well as sustainable aviation fuel (SAF), with biomass serving as a feedstock.
This initiative is poised to play a crucial role in decarbonising hard-to-abate sectors such as shipping, steel, and cement, areas where green methanol can make a significant impact.
Mahesh Kolli, Group President of AMG, highlighted the importance of this partnership in establishing AMG as a leader in clean energy transition solutions.
“This partnership demonstrates AMG’s emerging leadership position as a global clean energy transition solutions platform while contributing to India’s ambition of emerging as an exporter of reliable, sustainable, and lowest cost green molecules and its derivatives, accelerating industrial decarbonisation globally,” said Kolli.
Additionally, both companies will conduct studies to explore the long-term utilisation of around 350 KTA (kilotonnes per annum) of CO2 generated by GAIL’s gas processing plants for ethanol production.
GAIL will also have an option to take an equity stake in the proposed ethanol project. This initiative will help reduce carbon emissions while promoting the development of alternative fuels.
Rajeev Singhal, Director of Business Development at GAIL, underscored this proactive approach, stating: “By facilitating the supply of CO2 for ethanol production, we are taking a proactive approach to reduce carbon emissions and support alternative fuel development.”
The partnership supports green energy, innovation, and economic growth
This collaboration between GAIL and AMG not only supports India’s green energy transition but also advances technological innovation and promotes economic growth alongside environmental sustainability.
AMG has been steadily advancing its green ammonia projects across India. In August 2024, AMG reached a final investment decision (FID) on its one million-tonne-per-year green ammonia plant in Kakinada, India, which will use 1.3GW of John Cockerill alkaline electrolysers.
Shortly after securing the FID, RWE, a German multinational energy company, agreed to purchase up to 250,000 tonnes of green ammonia annually from the plant, with production scheduled to begin in 2027.
This landmark agreement between GAIL and AMG, coupled with AMG’s ongoing projects, underscores the accelerating momentum in India’s push towards greener energy solutions and its ambition to become a global leader in the production and export of green hydrogen and ammonia.
