KUALA LUMPUR, Malaysia – 30 October 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.