Gentari, the clean energy division of Malaysia's Petronas, has partnered AM Green to jointly invest, in phases, into a green ammonia platform, AM Green Ammonia Holdings BV (AMG Ammonia).
Gentari said in a statement on Oct. 30 that the company via its wholly-owned subsidiary Gentari International Renewables Pte Ltd, has inked an agreement with AM Green for the collaboration.
According to the statement, AMG Ammonia is established by the founders of Greenko, one of India’s leading renewable energy firms. An affiliate of Singapore investment entity, GIC, is also the investor.
AMG Ammonia is expected to produce 5 million tonnes per annum (MTPA) of green ammonia using round-the-clock renewable energy by 2030, as it aims to deliver green ammonia, which is currently the most stable form of transporting hydrogen.
It is noted that the 5 MTPA of green ammonia produced is equivalent to about 1 MTPA of green hydrogen, and would represent 20% of India’s goal for green hydrogen production by 2030, or 10% of Europe’s target for imported clean hydrogen.
This size and capacity will place AMG Ammonia among the world’s leaders in large-scale and cost-competitive green ammonia production.
The first export of green ammonia is targeted by late 2025, and aims to serve main Organization for Economic Co-operation and Development (OECD) markets, such as Japan, South Korea, Germany and Singapore.
According to the statement, the partnered firms both bring complementary capabilities across the green hydrogen value chain, including renewable energy, electrolyzes, ammonia production, and marketing capabilities.
Post-investment from the three investors, AMG Ammonia will be a fully funded platform for the targeted ammonia production plan. The platform is expected to invest, in phases, into projects across different locations in India. This will secure competitive supply of hydrogen to the global market and will be key for manufacturing and exporting green hydrogen in the region.
Hydrogen economy in Malaysia
For Gentari, strong collaborations in its focus market of Malaysia and Asia Pacific, will be important to achieving its global ambition of up to 1.2 MTPA in clean hydrogen by 2030.
In Malaysia, Gentari sees huge potential for developing a local hydrogen economy. To this end, the firm has made efforts to position the country as a hydrogen export hub, supporting a comprehensive national roadmap that includes hydrogen as an energy transition lever for Malaysia.
These efforts include working with Sarawak’s SEDC Energy to explore the state’s potential as a green hydrogen production hub. The company is also collaborating with its parent firm, Petronas, and utility firm Tenaga Nasional Berhad to drive studies on green hydrogen development in Kerteh, Terengganu and Pengerang, Johor towards the creation of a hydrogen economy.
Sushil Purohit, CEO of Gentari, noted that in OECD, Southeast and East Asian economies, green ammonia will address the decarbonization of industries such as power generation and shipping through co-firing.