Uniper and AM Green Collaborate on Green Ammonia Supply Chain to Support Decarbonization Goals
Multinational energy firm Uniper will commit to transport nearly 500,000 tons of green ammonia later this decade from a plant under construction in India.
Uniper’s offtake deal with AM Green is focused on future ammonia shipments, starting in 2028, at the latter’s plant being built in Kakinada, Andhra Pradesh. AM Green hopes to produce close to one million metric tons of green ammonia per year at Kakinada.
German-based Uniper wants to use ammonia, also known by the chemical symbol NH3, as another part of its diversification of low-carbon resources for European customers. Those include companies in the chemicals, fertilizer, refining and shipping sectors.
“This agreement with AM Green Ammonia is a key building block in our strategy to provide our customers with reliable access to renewable and low carbon molecules at scale,” Michael Lewis, CEO of Uniper, said in a statement. “With clear, stable and credible rules – and with procurement and demand-side measures such as clear quotas for renewable molecules that reward verified CO2-abatement performance – we can accelerate the decarbonization while safeguarding competitiveness.”
Ammonia is attractive to energy firms due to its carbon-free energy properties both in maritime transport and also as a carrier for green hydrogen. Green ammonia is created first by producing green hydrogen via water electrolysis powered by carbon-free electricity, then reacting nitrogen from the air via the Haber-Bosch process.
AM Green and the Port of Rotterdam Authority in the Netherlands signed a memorandum of understanding to collaborate on development of a green energy supply corridor between India and northwestern Europe through Rotterdam. The Port of Rotterdam is the largest seaport in Europe.
Ammonia production can be emissions intensive, considering that a large part of the world’s industrial hydrogen is generated through steam reforming of methane gas. Using green hydrogen to produce ammonia in the Haber-Bosch process would eliminate much of the CO2 and methane released during steam reforming.