SJVN inks renewable power supply MoU with AM Ammonia

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SJVN arm SJVN Green Energy Ltd (SGEL) has signed a Memorandum of Understanding (MoU) with AM Green Ammonia (India) for long-term supply of renewable energy to AM Green’s forthcoming green ammonia plants in Andhra Pradesh.

AM Ammonia (India), a company under Greenko Group, is developing one of the world’s largest green ammonia platforms at Kakinada, Andhra Pradesh. The platforms shall be developed in two phases starting with a capacity of one million tons per annum (mtpa) and ramping capacity to five million tons per annum by 2030 – equivalent of one million tonnes per annum of hydrogen.

Under the MoU, SGEL and AM Ammonia (India) have agreed to cooperate with each other for supply of renewable energy on long term basis for AM Ammonia’s green ammonia plants on mutually agreed terms and conditions.

The MoU paves way towards SGEL’s first venture into commercial & industrial segment.

SGEL will explore setting up of 4.5 GW of renewable energy projects in India including 2.5 – 3 GW of solar projects and 1.5 – 2 GW of wind projects over three phases, which shall ensure a supply of about 11,500 million units of renewable power on annual basis.

SGEL and AM Ammonia have agreed to explore an innovative commercial framework to ensure competitive tariff and adequate returns to SGEL including offering dollar denominated tariff. It has been agreed that the parties shall enter into a definitive agreement shortly so as to formalize the further course of action.

SGEL is currently handling a RE portfolio of about 7.2 GW under various stages of development (operation, construction and pre-construction).

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