BASF and AM Green have signed a memorandum of understanding (MoU) to explore and develop business opportunities for producing low-carbon chemicals exclusively with renewable energy in India. This partnership aims to create sustainable value chains within the country by utilising green energy sources.
The MoU includes a joint feasibility study on low-carbon chemical production, where both companies will evaluate potential technologies for such initiatives in India. A key component of the agreement is a non-binding letter of intent for BASF to purchase up to 100,000 tons annually of renewable-energy-produced ammonia from AM Green’s facilities across various locations in India. This ammonia will comply with EU standards for renewable fuels of non-biological origin (RFNBO), as outlined in the Renewable Energy Directive (RED III). Some of AM Green’s facilities have already received pre-certification for RFNBO compliance through the CertifHyTM certification scheme, with certification for other plants currently underway.
“We are committed to the sustainable transformation of the industries we serve. We are convinced that India is the right place to explore low-carbon chemical production together with our partner AM Green,” stated Markus Kamieth, chairman of the board of executive directors of BASF.
Mahesh Kolli, group president of AM Green, echoed the optimism, saying, “We are delighted to partner with a global chemical leader like BASF to propel the green transformation in the industry. AM Green’s vision of deepening capabilities in downstream value chains of green molecules is core to this partnership with BASF. Together, we aim to serve various chemical downstream and associated consumer industries by supplying green molecule feedstocks for the production of chemicals, materials, and products in BASF’s markets.”