GAIL, AM Green Join Forces for Renewable Energy Initiatives

• GAIL India and AM Green BV unite to transform India's energy landscape, targeting 2.5 GW renewable projects and pioneering e-methanol production for a sustainable future.

GAIL India Ltd and AM Green BV have partnered to develop renewable energy and e-methanol production in India, as outlined in a memorandum of understanding. The collaboration aims to explore solar-wind hybrid projects up to 2.5 GW, which, alongside Greenko's pumped storage initiatives, will ensure 24/7 power supply. Additionally, they will investigate the long-term supply of carbon dioxide from GAIL's gas processing plants for e-methanol production, with GAIL retaining an equity investment option in the e-methanol project.

Mahesh Kolli, Group President of AM Green, hailed the partnership as one of the largest carbon-free energy contracts globally. AM Green aims to achieve 5 million tonnes per year of green ammonia capacity in India by 2030, corresponding to 1 million tonnes of green hydrogen. This goal represents 10% of Europe's green hydrogen import targets for the same year. The company also plans to produce high-value green products for decarbonizing sectors such as aviation and chemicals.

What are the key goals and implications of GAIL's partnership with AM Green in India?

Here are the key goals and implications of GAIL's partnership with AM Green in India:

• Expansion of Renewable Energy Capacity: The partnership aims to develop a substantial renewable energy capacity of up to 2.5 GW through solar-wind hybrid projects, enhancing India's clean energy portfolio.
• 24/7 Power Supply Assurance: By combining solar and wind energy resources with Greenko's pumped storage initiatives, the collaboration ensures a stable and reliable 24/7 power supply, which is crucial for the consistency of energy delivery in renewable systems.
• E-Methanol Production: The partnership explores the long-term supply of carbon dioxide, sourced from GAIL’s gas processing plants, for the production of e-methanol. This presents a pathway for utilizing emissions for sustainable fuel production, supporting circular economy principles.
• Equity Stake in E-Methanol Project: GAIL retains an equity investment option in the e-methanol project, indicating a vested interest in the success and profitability of this venture, which could lead to significant returns in the growing market for green fuels.
• Contribution to Global Green Hydrogen Goals: AM Green's ambition to achieve 5 million tonnes per year of green ammonia capacity in India by 2030 aligns with global targets for green hydrogen, representing a commitment to substantial contributions to decarbonization efforts both regionally and internationally.
• Decarbonization of Key Sectors: The production of high-value green products through this partnership aims to decarbonize energy-intensive sectors such as aviation and chemicals, which are critical contributors to global carbon emissions.
• Strengthening India’s Energy Security: By investing in renewable energy and alternative fuels, the partnership helps strengthen India's energy security, reducing dependence on fossil fuels and enhancing national energy resilience.
• Attracting Investments and Technology Transfers: This collaboration may attract further foreign investments and technological advancements in India's renewable energy sector, fostering innovation and development in clean energy technologies.
• Alignment with Government Initiatives: The partnership supports India’s national policies focused on renewable energy and sustainability, aligning with initiatives like the National Hydrogen Mission, which aims to promote the production and utilization of green hydrogen.
• Enhancing GAIL's Sustainability Profile: GAIL’s involvement in this partnership enhances its sustainability profile and commitment to reducing its carbon footprint, potentially improving its standing among stakeholders and investors focused on environmental responsibility.
• Potential for Job Creation: As the projects progress and expand, they are expected to create job opportunities within the renewable energy sector, contributing to economic development and addressing unemployment challenges in the country.