New Delhi: State-owned SJVN Limited’s wholly-owned subsidiary SJVN Green Energy Limited (SGEL) has signed a Memorandum of Understanding (MoU) with AM Green Ammonia (India) Private Limited, a Greenko Group company, for the supply/sourcing of Renewable Energy (RE) on long-term basis for the latter’s Green Ammonia plants in Andhra Pradesh. The MoU was signed in the presence of Akhileshwar Singh, Director (Finance), SJVN, at Delhi on Wednesday. It was signed by Ajay Singh, CEO, SGEL, and Bhuwan Chandra Tripathi, CEO, AM Green Ammonia, and AM Jha, CFO, SGEL, Jitendra Yadav, GM (F), SJVN, in the presence of other senior officials from SJVN, SGEL and Greenko Group.
The AM Ammonia (India) Private Limited, a company under Greenko Group, is developing one of the world’s largest Green Ammonia Platforms at Kakinada, Andhra Pradesh. The platforms shall be developed in two phases, starting with a capacity of 1 million tonnes per annum (MTPA) and will be ramped upto 5 MTPA by 2030, equivalent to 1 MTPA of Hydrogen. “Under this MoU, the parties have agreed to cooperate with each other for supply/ sourcing of renewable energy on long term basis for these Green Ammonia Plants on a mutually agreed terms and conditions,” said a statement.
SGEL will explore setting-up 4,500 MW renewable energy projects in India, including 2,500–3,000 MW of solar projects and 1,500–2,000 MW of wind projects over three phases which shall ensure a supply of about 11,500 million units on annual basis.
SGEL and AM Ammonia have agreed to explore innovative commercial framework to ensure competitive tariff and adequate returns to SGEL, including offering dollar-denominated tariff. It has been agreed that the parties shall enter into a definitive agreement shortly to formalise the further course of action.
SGEL is currently handling an RE portfolio of about 7.2 GW under various stages of development. “This MoU paves the way towards SGEL’s first venture into the Commercial & Industrial segment,” said the statement.
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