SJVN Green Energy inked an MoU with AM Green Ammonia

On 26 June 2024, SJVN, through its wholly owned subsidiary SJVN Green Energy Limited (SGEL), signed a Memorandum of Understanding (MoU) with AM Green Ammonia (India) Private Limited. The signing ceremony took place in Delhi, in the august presence of Sh. Akhileshwar Singh, Director (Finance) at SJVN. This MoU signifies a significant agreement between the two entities aimed at fostering collaboration in the renewable energy sector.

The MoU was formally executed by key executives including Sh. Ajay Singh, CEO of SGEL, and Sh. Bhuwan Chandra Tripathi, CEO of AM Green Ammonia. Also present were Sh. A M Jha, CFO of SGEL, Sh. Jitendra Yadav, GM (F) of SJVN, and other senior officials from SJVN/SGEL and Greenko Group. This gathering highlighted the strategic importance of the partnership and underscored the commitment of both parties to the development of sustainable energy solutions.

AM Green Ammonia (India) Private Limited, part of the esteemed Greenko Group, is embarking on an ambitious initiative to build one of the world’s largest Green Ammonia Platforms at Kakinada, Andhra Pradesh. The project will be executed in phases, with initial plans to achieve a capacity of one million tons per annum (MTPA), scaling up to five million tons per annum by 2030. This expansion is equivalent to producing one million tons per annum of hydrogen, illustrating a significant step towards green energy innovation.

Under the terms of the MoU, SGEL and AM Green Ammonia have agreed to collaborate on a long-term basis for the supply and sourcing of renewable energy required for the operation of these Green Ammonia Plants. The agreement is structured to ensure mutual benefit and includes provisions for cooperative development under agreed terms and conditions.

SGEL has outlined ambitious plans to establish 4,500 MW of renewable energy projects across India. These projects will be implemented in three phases, with a focus on solar and wind energy. The initiative is expected to generate approximately 11,500 million units of electricity annually, contributing significantly to the renewable energy landscape in the country.

Additionally, SGEL and AM Ammonia intend to explore innovative commercial frameworks aimed at securing competitive tariffs and ensuring favorable returns for SGEL. This may include exploring options such as dollar-denominated tariffs, reflecting their commitment to financial prudence and operational efficiency.

To formalize their commitment, the parties plan to finalize a definitive agreement shortly. This agreement will outline the specific terms and conditions of their collaboration, paving the way for concrete actions and ensuring clarity in their joint endeavors.

Currently, SGEL manages a diverse Renewable Energy Portfolio totaling approximately 7.2 GW. This portfolio spans various stages of development, encompassing operational, construction, and pre-construction phases. The MoU with AM Green Ammonia marks a strategic milestone for SGEL as it enters the Commercial & Industrial Segment, expanding its footprint in the renewable energy sector.