Norway-based ammonia trader and distributor Yara Clean Ammonia has signed a term sheet with Greenko ZeroC, the green ammonia production arm of the India-based AM Green, for the long-term supply of up to 50% of renewable ammonia from the production facility in Kakinada, Andhra Pradesh.

The ammonia production facility of AM Green, promoted by the founders of the Greenko Group, will produce and export renewable ammonia derived from round-the-clock carbon-free energy by 2027.

This supply will enable Yara to produce low-emission fertilizer and decarbonize shipping, power, and energy-intensive industries.

”We are delighted to partner with Yara Clean Ammonia to propel the transformation of various industries and several OECD economies. Continuous focus on innovation combined with execution reinforces AM Green’s leadership position as a global clean energy transition solutions platform for low-cost green molecules such as hydrogen, ammonia, fuels, and other chemicals,” said Mahesh Kolli, President of AM Green.

“The AM Green Kakinada project expands our portfolio of ammonia produced with renewable energy and consolidates Yara Clean Ammonia’s position as a reliable supplier of low-emission ammonia to established and emerging markets like fertilizer production, cracking of clean ammonia to hydrogen, shipping fuel, power generation, and other industrial applications,” said Hans Olav Raen, CEO of Yara Clean Ammonia.

Yara Clean Ammonia works towards capturing growth opportunities in low-emission fuel for shipping and power, carbon-free food production, and ammonia for industrial applications.

Greenko ZeroC and four other companies won Solar Energy Corporation of India’s tender to set up 450,000 metric ton production facilities for green hydrogen in January.

Last October, Malaysian and Singaporean entities Gentari and GIC tied up with Greenko to develop a green ammonia platform.

Earlier this year, the Government of India announced incentives for the domestic production of 550,000 metric tons of green ammonia as part of the Strategic Interventions for Green Hydrogen Transition program.