- Mitsui-AM Green MoU for green ammonia & biofuels
- Potential investment in low-carbon aluminium projects
- Targets 5 MTPA green ammonia by 2030 in India
Japan's Mitsui & Co has agreed with India's AM Green through a Memorandum of Understanding (MoU) to investigate the possibility of strategically collaborating on energy transition projects. Initially the focus would be on green ammonia, biofuels, and low-carbon metals. Besides the partnership, which also provides for potential equity investments by Mitsui in AM Green's holding company and its green aluminium initiatives, offtake rights and supply of auxiliary materials for smelters and refineries are also included.
AM Green, after signing the agreements with Rio Tinto and Malaysia's Petronas, has now linked up globally for the third time with Mitsui. AM Green, a company founded by Greenko Group promoters Anil Chalamalasetty and Mahesh Kolli, has set a target of producing 5 million tonnes per annum (MTPA) of green ammonia by the year 2030 — corresponding to 1 MTPA of green hydrogen — which would account for one-fifth of the green hydrogen target of India and only 10% of the import needs of Europe.
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The first output will be from Kakinada at the end of 2026 through a Rs 12,500-crore repurposed facility, which will draw its power from 7 GW renewables and storage. In the metal industry, AM Green has plans for a 1 MTPA green aluminium smelter and a 2 MTPA alumina refinery in Andhra Pradesh. The first phase (500,000 tonnes) is targeted for 2030 at a port in the south, where the facility would be powered entirely by renewable energy instead of coal.
The biofuels segment is one of the aspects of the broader exploration, which is in line with AM Green's Bio2X ventures, such as production of second-generation ethanol and sustainable aviation fuel. Mahesh Kolli said: "This collaboration will enable the aluminium industry to use less carbon-intensive processes and also broaden market opportunities for a larger set of green products." The agreement is in line with AM Green's plan of a $20 billion capex to drive the global decarbonization agenda further through the provision of green molecules and materials at competitive prices.