RWE Supply & Trading has entered into a Memorandum of Understanding (MoU) with AM Green Ammonia B.V. (AMG) for a long-term supply of green ammonia, marking a step towards expanding the global supply of low-carbon derivatives.
Under the agreement, AMG will provide up to 250,000 tonnes of green ammonia annually from its production facilities in India, contributing to RWE’s growing portfolio of green energy solutions. While this partnership signals progress, it raises important questions about scalability and the practicalities of delivering green ammonia at such volumes.
The initial agreement outlines a supply of 50,000 tonnes of green ammonia produced at AMG’s Kakinada facility, with the remaining 200,000 tonnes to come from the Tuticorin site. The deliveries, scheduled to begin by 2027, will be sourced from ammonia plants powered entirely by renewable energy—solar, wind, and hydroelectric power. These facilities aim to meet the EU’s stringent Renewable Fuels of Non-Biological Origin (RFNBO) standards under the Renewable Energy Directive (RED III). AMG’s Kakinada facility has already achieved pre-certification, positioning the company to contribute to the global green energy transition.
The project’s timeline—starting deliveries in 2027—could also face challenges as the hydrogen and ammonia markets are still evolving.
AMG is positioning itself as a leader in the clean energy transition, with a focus on green molecules such as hydrogen and ammonia. AMG’s vision of leveraging renewable energy for cost-effective green ammonia production is forward-thinking, but innovation in production methods will need to continue in order to meet growing global demand.
