Introduction to the Landmark Agreement

Yara Clean Ammonia, the world’s largest trader and distributor of ammonia, has entered into a long-term agreement with India-based Greenko ZeroC, the green ammonia production arm of AM Green. This historic deal significantly boosts the green ammonia industry and propels the net-zero goals of both economies.

Key Features of the Green Ammonia Deal

The agreement ensures the supply of 50% renewable ammonia from Phase 1 of AM Green’s ammonia production plant in Kakinada, Andhra Pradesh. According to the term sheet, Greenko’s plant will produce and export renewable ammonia derived from round-the-clock carbon-free energy by 2027.

Compliance and Utilization

The press release from Yara Ammonia highlights two important aspects of this deal:

• AM Green’s platform will ensure compliance with EU RFNBO and Renewable Energy Directive requirements for renewable ammonia and other sustainable fuels.
• Yara Clean Ammonia will utilize the renewable ammonia supply to manufacture low-emission fertilizer and decarbonize industries such as shipping, power, and energy-intensive sectors.

Transforming Industries

Mr. Mahesh Kolli, President of AM Green, expressed his excitement about the partnership: “We are delighted to partner with Yara Clean Ammonia to propel the transformation of various industries and several OECD economies. 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.”

The Future of Clean Ammonia

Ammonia, with no CO2 emissions upon combustion, is poised to be a key fuel in the future, aligning well with the hydrogen economy. Unlike liquid hydrogen, ammonia doesn’t require extreme cooling and boasts superior energy density, making it more practical for transportation and storage. Additionally, ammonia production using renewable energy sources leads to negligible or zero GHG emissions.

AM Green’s Ambitious Plan

Founded by the creators of Greenko Group, AM Green is building production capacity for green molecules, including:

• Green hydrogen
• Ammonia
• Biofuels and e-methanol
• Sustainable aviation fuels
• High-value downstream chemicals

Their main goal is to decarbonize tough industries. Greenko plans to establish an international renewables and storage business by collaborating with John Cockerill of Belgium to manufacture electrolyzers for green ammonia production.

Mega-Scale Green Ammonia Platform

Greenko’s Kakinada project is a multi-phase green ammonia production and export facility, set to be one of the world’s largest green ammonia platforms. According to their annual report:

• Greenko is building a 2 GW per year Alkaline Electrolyser manufacturing capacity to produce 1 Lakh TPA Green Ammonia by 2024.
• They plan to supplement this with an additional 1 MTPA Green Ammonia manufacturing capacity over the next two years, reaching a total capacity of 3.1 MTPA by the end of 2026.
• There are plans to increase capacity to 5 MT per annum by 2030.

Yara’s Decarbonization Goals

Yara Clean Ammonia, headquartered in Oslo, Norway, operates the largest global ammonia network with 15 ships, 18 ammonia terminals, and multiple production and consumption sites worldwide. In 2021, Yara received NOK 283.25 million from Enova to develop a green ammonia initiative, marking the first step towards fully decarbonizing the Herøya ammonia plant in Porsgrunn, Norway.

Leading the Green Transition

CEO Svein Tore Holsether emphasizes Norway’s unique opportunity to lead the green transition, highlighting green ammonia’s versatility in reducing emissions in global food production and long-distance shipping. Yara’s corporate board commits to investing in a 24 MW demonstration plant, making it one of the world’s largest green ammonia production projects. This shift to renewable energy will cut CO2 emissions by about 41,000 tons yearly and produce enough hydrogen to yield 60,000 – 80,000 tonnes of green, fossil-free mineral fertilizer annually.

Yara and Cepsa Partnership

Yara Clean Ammonia’s partnership with Cepsa aims to decarbonize the European industry and maritime transport by creating a secure and cost-effective supply chain for low-emission ammonia and hydrogen. Hans Olav Raen, CEO of Yara Clean Ammonia, commented on the AM Green collaboration: “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.”

Conclusion

The Yara Ammonia-Greenko deal could revolutionize sustainable energy architecture by ambitiously ramping up green ammonia production and supply, indicating substantial potential for a greener future.

This article was found by the ClimateDoor team on this website: Carbon Credits.‍