Yara Clean Ammonia (YCA) announced on May 13 that it has signed a term sheet with Greenko ZeroC, the green ammonia production arm of India-based AM Green, for the supply of renewable ammonia from Phase 1 of AM Green’s ammonia production facility in Kakinada, India.
YCA said the term sheet and the subsequent offtake agreement covers the long-term supply of up to 50% of renewable ammonia from Phase 1 of the Kakinada facility, which aims to produce and export renewable ammonia by 2027. YCA said the renewable ammonia supply will contribute to produce low-emission fertilizer and for de-carbonizing other industries like shipping, power, and energy intensive industries.
“We are delighted to partner with Yara Clean Ammonia to propel the transformation of various industries and several OECD economies,” said AM Green President Mahesh Kolli. “Continuous focus on innovation combined with execution reinforces AM Green’s leadership position as a global clean energy transition solutions platform for low-cost green molecules such as hydrogen, ammonia, fuels, and other chemicals.”
AM Green’s Kakinada facility is one of world’s largest green ammonia platforms, starting in Phase 1 with 1 million mt/y of green ammonia production capacity and ramping up to 5 million mt/y by 2030 in Phase 2.
“The AM Green Kakinada project expands our portfolio of ammonia produced with renewable energy and consolidates Yara Clean Ammonia’s position as a reliable supplier of low-emission ammonia to established and emerging markets like fertilizer production, cracking of clean ammonia to hydrogen, shipping fuel, power generation, and other industrial applications,” said YCA CEO Hans Olave Raen.
Headquartered in Oslo, YCA operates the largest global ammonia network with 15 ships and has, through Yara, access to 18 ammonia terminals and multiple ammonia production and consumption sites globally. Revenues and EBITDA for FY 2023 were $1.9 billion and $101 million, respectively.