India's state-owned hydropower utility SJVN Limited will explore setting up 4,500 MW of renewable energy projects in India to ensure the supply of 11,500 million units of clean energy for the production of green ammonia in the country.
This capacity includes 2.5 GW to 3.0 GW of solar PV capacity and 1.5 GW to 2.0 GW of wind energy, to be established over 3 phases.
SJVN's wholly-owned subsidiary SJVN Green Energy Limited (SGEL) signed a memorandum of understanding (MoU) with AM Green Ammonia (India) Private Limited to this effect.
The latter is a Greenko Group company that's building one of the world's largest green ammonia platforms in Kakinada, Andhra Pradesh. According to SJVN, the platforms are to be built in 2 phases starting with a capacity of 1 million tons/annum (MTPA) and ramping capacity to 5 MTPA by 2030. This is equivalent to 1 MTPA hydrogen.
Greenko had earlier announced an MoU with Germany-based multinational energy group Uniper for the offtake of 250,000 tons/annum of green ammonia from phase I of its Kakinada project.
Under the MoU, both companies will cooperate for the supply/sourcing of renewable energy on a long-term basis for the green ammonia plants. They have agreed to explore an innovative commercial framework to ensure competitive tariffs and adequate returns to SGEL. This includes offering a dollar-denominated tariff. A definitive agreement is being planned.
SJVN says this MoU paves the towards SGEL's maiden venture into the commercial and industrial (C&I) segment. The company's current renewable energy portfolio comprises around 7.2 GW under various stages of development, spanning operation, construction and pre-construction.
This agreement is significant for SJVN's renewable energy target achievement as the company aims to achieve 25 GW of renewable energy portfolio by 2030, and 50 GW by 2040.