BASF and AM Green B.V. have officially entered a memorandum of understanding (MoU) aimed at exploring and developing business opportunities in low-carbon chemicals produced entirely from renewable energy sources in India. This strategic agreement was signed by Markus Kamieth, chairman of the board of executive directors of BASF SE, and Mahesh Kolli, group president of AM Green, during the Asia-Pacific Conference of German Business 2024 held in New Delhi. The signing marks a significant step towards collaboration between the two companies in the sustainable chemicals sector, as outlined in a joint statement released by both parties.

The partnership is particularly timely, given the global shift towards sustainability and the urgent need to reduce carbon emissions across various industries. With India’s growing emphasis on renewable energy and sustainability initiatives, both BASF and AM Green recognize the potential to leverage this momentum for innovative chemical production.

Under the MoU, BASF and AM Green will conduct detailed feasibility studies on low-carbon chemical production within India. This includes a comprehensive assessment of potential technologies that can be employed to achieve efficient and sustainable production methods. The collaboration also features a non-binding letter of intent for the offtake of 100,000 tonnes of ammonia annually, specifically generated from renewable energy sources. This ammonia will include energy derived from pumped storage projects at AM Green’s facilities in India, showcasing a commitment to innovative energy solutions.

A critical aspect of the ammonia produced under this initiative is its compliance with the European Union’s standards for renewable fuels of non-biological origin (RFNBO), as stipulated in the Renewable Energy Directive (RED III). Some of AM Green’s facilities have already obtained pre-certification for RFNBO compliance through the 'CertifHyTM' voluntary certification scheme, and pre-certification processes for additional facilities are currently in progress. This compliance ensures that the products not only meet rigorous environmental standards but also align with global sustainability goals.

Kamieth expressed a strong commitment to the sustainable transformation of the industries they serve, stating, "We believe that India is the right place to explore low-carbon chemical production together with our partner AM Green." This partnership signifies a proactive approach to addressing environmental challenges, fostering innovation in sustainable chemical production, and contributing to the circular economy. By combining BASF’s expertise in chemical production with AM Green’s focus on renewable energy, the collaboration aims to establish a robust framework for developing low-carbon solutions that can meet both local and international market demands.

This MoU not only reinforces both companies' commitment to sustainability but also positions them at the forefront of the evolving landscape of low-carbon chemical production, paving the way for future innovations that align with global environmental goals.