Malaysia's state-owned energy company, Petronas, is gearing up to invest $1.6 billion into an Indian green ammonia project, marking a significant move in New Delhi's quest to enhance its energy export capabilities.

According to the reports, this investment, facilitated by Petronas's Gentari Renewables division, secures a 30% stake in a green ammonia firm established by the founders of the Indian renewables giant Greenko. Greenko is renowned as one of India's major players in wind and solar energy production and energy storage operations. 

With performative data confirming its position, this investment ranks among the top five most substantial private capital raises witnessed in India this year. It underscores the increasing interest of international investors in India's ever-growing renewable energy sector. As per Bloomberg’s report, the deal's valuation places AM Green Ammonia Holdings at approximately $5.5 billion.

GIC, the Singaporean sovereign wealth fund, is set to join the investment initiative, although the precise value of their contribution remains undisclosed. Notably, GIC is the largest shareholder of Greenko Energy Holdings and holds four non-executive positions on its board.

As part of the investment agreement, AM Green Ammonia is committed to producing 5 million tonnes of green ammonia by 2030, with operations spanning five Indian states. The company also plans to initiate exports within the next two years.

Ammonia, once linked mainly to fertilizers, is now seen as a key factor in reducing fossil fuel dependency for numerous organizations and governments. Mahesh Kolli, Greenko's Group President and Joint Managing Director, described ammonia as a "strategic molecule." Given India's abundant sunshine, investors are exploring its substantial solar capacity for generating hydrogen and ammonia through renewable sources.

AM Green aims to establish the world's most cost-effective hydrogen delivery platform, leveraging renewable energy generation and storage, while Greenko Group collaborates with John Cockerill to manufacture electrolyzers for green hydrogen, aimed at reducing expenses. Gautam Adani's joint venture with Kowa intends to sell green hydrogen and derivatives in Japan, Taiwan, and Hawaii, with a forecast to commence green hydrogen production by March 2027.

Greenko has signed a memorandum of understanding with Uniper for green ammonia supply, with the first delivery to Germany slated for mid-2025, marking India's entry into energy exports. India, the world's third-largest oil importer, aims for energy independence by 2047 and has set a "net-zero" emissions goal by 2070, although it's deemed insufficient by the Climate Action Tracker to meet the Paris Agreement's warming goals.

The green ammonia agreement aligns with Petronas' goal of a 30% revenue contribution from non-traditional ventures by the end of this decade, part of its commitment to reducing emissions. Singapore, resource-challenged, is pursuing a national hydrogen strategy. GIC, among other global institutional investors, has been increasingly investing in green hydrogen. Citi and Bank of America played advisory roles in the deal. Petronas and GIC have refrained from commenting.

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