AM Green plans to invest $1 billion in venturing into second-generation biofuels by establishing two bio-ethanol plants, marking a significant expansion for the renewable energy firm. Additionally, the company intends to acquire a 50% stake in Assam Bio Refinery Pvt. Ltd from Finnish entities Fortum Oyj and Chempolis Oy, as reported by Live Mint.
Assam Bio Refinery is currently co-owned by Oil India Ltd subsidiary Numaligarh Refinery Ltd (NRL) and Fortum and Chempolis, with stakes of 50%, 40%, and 10% respectively. Concurrently, AM Green plans to acquire Chempolis Oy, a biotechnology firm based in Oulu, Finland, in which Fortum, a Finnish state-run utility, has an interest.
Founded by Mahesh Kolli and Anil Kumar Chalamalasetty of Greenko Group, AM Green has already entered into exclusivity agreements for these transactions, according to reports citing anonymous sources.
“AM Green has inked exclusivity agreements to acquire Fortum Oyj and Chempolis Oy’s stakes in Assam Bio Refinery Pvt. Ltd, as well as Chempolis Oy. The firm plans to expand its footprint in this sector, aiming to establish two additional plants besides Assam Bio Refinery,” sources quoted in the report stated.
The bio-ethanol production will utilize non-food biomass such as plant materials and animal waste. The Assam joint venture will annually process 300,000 tons of bamboo to produce 50,000 tons of bioethanol, 19,000 tons of organic compound furfural, 11,000 tons of acetic acid, and generate 144 gigawatt hours of green energy.
Chempolis, renowned as a technology licensor for second-generation biofuels, has pioneered the world’s first plant producing cellulosic ethanol and bio-based chemicals from bamboo.
AM Green’s strategic vision includes expanding into green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels, and high-value downstream chemicals, aligning with India’s strong focus on transitioning towards sustainable energy solutions.
