KUALA LUMPUR, MALAYSIA -
Media OutReach - 2 November 2023 - Gentari Sdn Bhd (Gentari), via its wholly-owned subsidiary Gentari International Renewables Pte Ltd, has entered into an agreement with AM Green BV (AM Green) to jointly invest, in phases, into a green ammonia platform, AM Green Ammonia Holdings BV (AMG Ammonia). AMG Ammonia is established by the founders of Greenko, one of India's leading renewable energy companies. An affiliate of Singapore investment entity, GIC, is also an investor in AMG Ammonia.
AMG Ammonia is projected to produce 5 million tonnes per annum (MTPA) of green ammonia using round-the-clock renewable energy by 2030. The platform aims to deliver green ammonia, as it is presently the most mature and stable form of transporting hydrogen.
The 5 MTPA of green ammonia produced is equivalent to approximately 1 MTPA of green hydrogen, and would represent 20% of India's target for green hydrogen production by 2030, or 10% of Europe's target for imported renewable hydrogen. This size and capacity will place AMG Ammonia among the world's pioneers in large-scale and cost-competitive green ammonia production. The first export of green ammonia from this platform is targeted by late 2025, and aims to serve key OECD markets, such as Germany, Japan and South Korea, as well as Singapore.
Gentari and AM Green both bring complementary capabilities across the green hydrogen value chain, including renewable energy, electrolysers, and ammonia production and marketing capabilities. The parties will mutually invest in AMG Ammonia, demonstrating full commitment to realise the platform's potential and expand their presence in Asia Pacific and Europe. Post-investment from Gentari, AM Green and GIC, 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 ensure competitive supply of hydrogen to the global market and will be key for manufacturing and exporting green hydrogen in the region.
For Gentari, strong collaborations in its focus market of Malaysia and the broader Asia Pacific, will be vital to delivering its global ambition of up to 1.2 MTPA in clean hydrogen by 2030. In Malaysia, the company sees strong potential for developing a local hydrogen economy. To this end, Gentari has undertaken efforts to position Malaysia as a hydrogen export hub whereby its hydrogen ventures will support a comprehensive national roadmap that includes hydrogen as an energy transition lever for Malaysia.
These efforts include working with Sarawak's SEDC Energy Sdn Bhd to jointly explore the state's potential as a green hydrogen production hub. At the same time, Gentari is also collaborating with PETRONAS and Tenaga Nasional Berhad to advance studies on green hydrogen development in Kerteh, Terengganu and Pengerang, Johor towards the creation of a hydrogen economy in Malaysia.
Sushil Purohit, Chief Executive Officer of Gentari, said: "As Gentari expands our portfolio of clean energy solutions in Malaysia, Asia Pacific and beyond, we believe in the critical importance of industry-level collaborations that combine complementary strengths and unlock synergies. This partnership with AM Green and GIC is a testament to our commitment in accelerating green hydrogen adoption globally, to make an impact in the pursuit of a net zero future. In OECD, Southeast and East Asian economies, green ammonia will address the decarbonisation of industries such as power generation, through co-firing, as well as shipping."
Anil Chalamalasetty, Founder, Greenko Group and AM Green said: "We are delighted to partner with Gentari and GIC, to venture into the global low carbon green economy. The commitment from Gentari and GIC underpins Prime Minister Modi's vision for India to become a leader in global energy transition. This strategic partnership will work to accelerate net zero targets of various industries and several OECD economies. Continuous focus on innovation combined with execution will ensure our venture, AM Green, remains ahead of others in becoming a global clean energy transition solutions platform."
Gentari was advised by BofA Securities and Shardul Amarchand Mangaldas & Co. Completion of the transaction is subject to the fulfilment of customary condition precedents.
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Gentari
Gentari is focused on delivering the solutions required to put clean energy into action today, to transform how we live tomorrow. Gentari's three initial core pillars of Renewable Energy, Hydrogen and Green Mobility form a comprehensive portfolio of solutions to help our customers in their decarbonisation journey. Its global 2030 aspiration is to achieve 30-40 GW of installed capacity in renewable energy, up to 1.2 MTPA of clean hydrogen, and over 10% share of the public charging points and Vehicle-as-a-Service market across key countries in Asia Pacific. In the long term, Gentari aims to be the most valued clean energy solutions partner, creating greater impact, connecting businesses, and making the journey to a net zero future possible.
AM Green
AM Green is indirectly wholly-owned and controlled by the founders of Hyderabad-based Greenko Group - Anil Chalamalasetty and Mahesh Kolli. With their strength in renewable energy and storage as a service model, and track record of energy entrepreneurship, AM Green aims to become one of the most cost-competitive producers of green hydrogen, green ammonia and other green molecules in the world. In India, AM Green is developing production capabilities for green molecules (green hydrogen, green ammonia, biofuels, green caustic soda, e-methanol) for decarbonisation in hard to abate industries. The venture will also set up an international renewables and storage business and a JV for making electrolysers with John Cockerill of Belgium.