NTPC Renewable Energy said it would supply 1.3 GW of round-the-clock (RTC) renewable energy for powering Greenko’s upcoming green ammonia plant in Andhra Pradesh’s Kakinada.

The government-owned power producer entered a term-sheet agreement with Greenko ZeroC, the green molecule production arm of Hyderabad-based Greenko Group.

According to Greenko, the Kakinada facility is expected to add up to 1 million tons of green ammonia production capacity annually by 2027.

The phase-I of the project will produce ammonia based on electrolyzers. It is supported by the company’s Pinnapuram Integrated Renewable Energy Storage project to overcome intermittency issues of renewable production.

Greenko began negotiations with Germany-based energy company Uniper in February this year for the annual offtake of 250,000 tons of green ammonia to the European Union. Under the agreement, green ammonia would be supplied from Phase-I of Greenko ZeroC’s ammonia production unit.

Earlier this month, NTPC Renewable Energy invited bids to enlist technical consultants for green ammonia feasibility studies.

Greenko Group has accelerated efforts to expand its operations and services into green molecule solutions and electrolyzers which can be used in many large-scale applications, including the production of green hydrogen for heavy-duty electric vehicles.

To develop a green ammonia project in Himachal Pradesh, Greenko has partnered with Belgium-based engineering company John Cockerill to supply 140 MW alkaline electrolyzers. Greenko ZeroC and John Cockerill will jointly develop the project to produce around 300 metric tons of green ammonia per day.

Earlier this year, Greenko ZeroC entered into a strategic partnership with a pharmaceuticals company Granules India to enable carbon-free energy and green molecule solutions.

The two companies will initially collaborate to develop and promote state-of-the-art integrated Green Pharmaceutical Zones in Kakinada, Andhra Pradesh. Granules will build a green field facility spread across 100 acres. The facility will cost ₹20 billion (~$241.1 million).