Multibagger Stock Seals Partnership for 100,000 Tons of Green Ammonia Offtake Annually!
Green Energy Giant AM Green Partners with BASF to Drive Low-Carbon Chemical Production
BASF and AM Green B.V. have signed a memorandum of understanding (MoU) to explore business opportunities in low-carbon chemical production using renewable energy sources in India. This MoU, signed by Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE, and Mahesh Kolli, Group President of AM Green, was formalized at the Asia-Pacific Conference of German Business 2024 in New Delhi.
Focus on Low-Carbon Chemicals and Renewable Ammonia
Under the agreement, BASF and AM Green will conduct feasibility studies to identify technology solutions for low-carbon chemical production in India. The partnership also includes a non-binding letter of intent for BASF’s offtake of 100,000 tons per year of green ammonia from AM Green’s facilities across India. This ammonia will meet EU standards for renewable fuels of non-biological origin (RFNBO) as outlined in the Renewable Energy Directive (RED III).
Leveraging Renewable Energy Sources
The green ammonia, produced exclusively using renewable energy, including energy from pumped storage projects, will bolster AM Green’s ambitious sustainability goals. Several of AM Green’s facilities have already achieved pre-certification for RFNBO compliance through the CertifHyTM certification scheme, with remaining facilities undergoing the process. This positions AM Green as a key player in India’s National Green Hydrogen Mission and supports Europe’s green hydrogen import goals.
Executive Insights on the Partnership
Dr. Markus Kamieth expressed BASF’s commitment to sustainable industry transformation, stating, “India is the right place to explore low-carbon chemical production together with AM Green.” Mahesh Kolli added, “This partnership will enable AM Green to deepen our downstream value chains for green molecules, which are essential for the industry’s green transformation.” The partnership aims to serve multiple downstream and consumer industries by providing critical green molecule feedstocks.
About BASF and AM Green’s Market Position
BASF is a global leader in sustainable chemical production, with a 2023 revenue of €68.9 billion. The company employs around 112,000 people worldwide, with shares traded on the Frankfurt and U.S. stock exchanges. AM Green, a leader in energy transition solutions founded by Greenko Group’s Anil Chalamalasetty and Mahesh Kolli, aims to achieve 5 MTPA of green ammonia capacity by 2030. BASF’s stocks have shown strong returns, with a 139 per cent gain on a year-to-date basis and 191 per cent in one year.
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In Q1 FY25, BASF reported a steady financial performance with a 19 per cent gross margin, 8 per cent operating profit margin, and a net profit margin of 5.57 per cent. This growth reinforces its strategic position as an influential player in India’s green energy transition.