Greenko Group is currently in discussions with REC, a state-run power financier, to secure funding for its green hydrogen and green ammonia project, which boasts a capacity of 600 MW, reported The Economic Times. The company aims to raise between Rs 2,200-2,400 crore from REC. Upon achieving financial closure, Greenko will enter into firm and definitive agreements with the lender.
The project has already secured an offtake agreement with Norway’s Yara and has received pre-certification for ammonia. This offtake agreement, a contract for the advance purchase or sale of goods before production, will facilitate project financing. Earlier in May, Greenko signed a term sheet with Yara Clean Ammonia, a trader and distributor of ammonia, for the supply of renewable ammonia from Phase 1 of AM Green’s ammonia production facility located in Kakinada, Andhra Pradesh.
The borrowing will be undertaken through AM Green, established by Greenko founders Anil Chalamalasetty and Mahesh Kolli, which is pioneering India’s first green hydrogen and green ammonia project. According to media report, the financing aims to support the project’s long-term supply agreement with Yara. The partnership with Yara covers up to half of the renewable ammonia produced from phase I of AM Green’s annual 1 MT production facility in Kakinada. Previously, REC had provided Rs 4,000 crore in funding to the ACME Group for its green hydrogen and green ammonia project in Oman.
