German energy company Uniper has signed a long-term off-take agreement with India's AM Green Ammonia to procure up to 500,000 tonnes of renewable ammonia annually. This agreement is expected to establish one of the first large-scale green fuel supply corridors between India and Europe.
The binding agreement, announced on Monday, stipulates that Uniper will purchase certified non-biological origin renewable ammonia from AM Green's projects in India. The first deliveries are anticipated to commence as early as 2028, sourced from AM Green's currently under-construction one-million-tonne-per-year green ammonia plant in Kakinada, Andhra Pradesh.
The exchange of agreement documents took place in Ahmedabad, witnessed by German Chancellor Friedrich Merz and Indian Prime Minister Narendra Modi, underscoring the strategic and geopolitical significance of the deal—as both nations aim to deepen cooperation in clean energy and industrial decarbonization.
For Uniper, this off-take agreement is a critical step in building a diversified portfolio of low-carbon and renewable energy products to serve its European industrial customers. Renewable ammonia is increasingly viewed by various industries as a key pathway for decarbonizing high-emission sectors, including chemicals, fertilizers, refining, and even shipping, while also serving as a transportable green hydrogen carrier.
Uniper's Chief Executive Officer, Michael Lewis, described the agreement as a cornerstone of the company's clean fuel strategy. He noted that green ammonia production technology is mature and requires no fossil fuel carbon input, offering a relatively low-cost advantage for carbon emission reduction. He added that this collaboration helps lay the foundation for a scalable India-Europe supply chain capable of delivering certified, industrial-scale carbon emission reductions.
This agreement also marks a milestone for India's ambition to become a global exporter of green hydrogen and its derivatives, a core objective of the country's National Hydrogen Mission. The renewable ammonia produced by AM Green meets Europe's stringent RFNBO (Renewable Fuels of Non-Biological Origin) criteria, leveraging stable, dispatchable renewable energy solutions to ensure traceability and compliance for European end-users.
AM Green is backed by an international consortium, including members such as Gentari, the clean energy subsidiary of Malaysia's Petronas, Singapore's GIC, and the Abu Dhabi Investment Authority. The company is developing green ammonia plant projects at several Indian ports, including Kakinada, Tuticorin, and Kandla, supporting India's goal of becoming a large-scale export hub for Europe and other demand markets.
The Kakinada project finalized its final investment decision and commenced construction in 2024, positioning it among the few RFNBO-compliant green ammonia projects currently under development globally. Upon full operational capacity, the plant is expected to reduce approximately 2 million tonnes of CO2 emissions annually and create over 600 local jobs.
Currently, European policymakers and industries are intensifying efforts to secure long-term supplies of renewable fuels to meet decarbonization targets—there is a growing recognition that domestic production alone cannot satisfy demand. The import of green hydrogen carriers, such as ammonia, is increasingly seen as a necessary measure to bridge the gap between climate goals and industrial needs.
By securing a long-term, stable supply source from India, Uniper not only mitigates supply risks but also contributes to the development of international clean energy trade corridors, which are poised to reshape the global energy market landscape over the next decade.
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