India-EU Green Corridor: Uniper Inks Landmark Ammonia Deal

India-EU Green Corridor: Uniper Inks Landmark Ammonia Deal

Uniper secures 500,000 tons of certified green ammonia from India's AM Green, forging a new energy axis and fueling Europe's industrial decarbonization.

1 day ago

Uniper and AM Green Forge Landmark Green Ammonia Corridor Between India and Europe

DÜSSELDORF, Germany and HYDERABAD, India – January 12, 2026 – In a move that redraws the global energy map, European energy leader Uniper has signed a long-term binding offtake agreement with India's AM Green Ammonia for up to 500,000 tons of renewable ammonia per year. The landmark deal, exchanged in the presence of German Chancellor Friedrich Merz and Indian Prime Minister Shri Narendra Modi, establishes one of the first major green energy supply corridors between the Indian subcontinent and Europe, marking a pivotal moment in the global transition away from fossil fuels.

The agreement will see Uniper offtake green ammonia from AM Green's facility in Kakinada, Andhra Pradesh, with the first shipments expected as early as 2028. This supply is crucial for Europe's efforts to decarbonize its heavy industries, while simultaneously cementing India's position as a rising superpower in the production and export of green molecules.

Navigating Europe's Strict "Green Fuel" Gauntlet

A critical component of the deal is the ammonia's certification as a Renewable Fuel of Non-Biological Origin (RFNBO). This designation is Europe's gold standard for green fuels, governed by a stringent regulatory framework under the EU's Renewable Energy Directive (RED III). Far from a simple green label, RFNBO compliance is a complex technical and legal hurdle that suppliers must clear to access the European market.

The regulations mandate that RFNBOs be produced using electricity from new, unsubsidized renewable sources, a principle known as "additionality." This ensures that green hydrogen production does not cannibalize existing renewable electricity from the grid. Furthermore, strict rules on "temporal and geographical correlation" require that the production of the fuel is closely matched in time and location to the generation of the renewable power. By 2030, this will require hourly matching, a significant operational challenge. Most importantly, the entire lifecycle greenhouse gas emissions must be at least 70% lower than the fossil fuel equivalent, a benchmark set to tighten to 80%.

AM Green has proactively engineered its project to meet these exacting standards. Its Kakinada plant has already achieved a major milestone by becoming the first project in India to receive CertifHy EU RFNBO pre-certification. This independent verification confirms that the project's design, which leverages a unique system of pumped hydro storage to support round-the-clock renewable power from wind and solar, is compliant with European law.

Anil Kumar Chalamalasetty, Founder of Greenko Group and AM Green, highlighted this achievement, stating, "This partnership is a milestone for India's role in the global energy transition. AM Green's renewable ammonia is designed to meet stringent European RFNBO compliance standards. This is achieved through our unique firm and dispatchable clean electricity solutions."

A New Energy Superpower Rises in India

The Uniper agreement is a powerful validation of India's National Hydrogen Mission, a government-led initiative to establish the country as a global hub for the production and export of green hydrogen and its derivatives. AM Green, a platform of the Greenko Group, is at the forefront of this ambition.

The company's first 1 million ton per annum (MTPA) plant in Kakinada is already under construction, having reached its Final Investment Decision (FID) in 2024. The project is backed by a formidable consortium of global investors, including Malaysia's Gentari, Singapore's sovereign wealth fund GIC, and the Abu Dhabi Investment Authority (ADIA), signaling immense confidence in AM Green's strategy and execution capabilities. The firm plans to expand the site's capacity to 5 MTPA by 2030.

Mahesh Kolli, Co-Founder of Greenko Group and AM Green, emphasized the project's competitive edge, stating, "I am happy to share that our partnership with Uniper reaffirms our offering of the lowest possible carbon footprint hydrogen/ammonia delivered at the right price point for large scale adoption for decarbonising global energy systems. This outcome reflects the focused collaboration and disciplined execution of our teams, strengthened by the strategic partnership of our investors."

Securing the Molecules for a Net-Zero Europe

For Uniper, this agreement is a strategic imperative. As Europe's industries face mounting pressure to decarbonize, the demand for green molecules like renewable ammonia is soaring. Uniper is positioning itself as a key importer and distributor to supply its customers in hard-to-abate sectors.

Renewable ammonia serves as both a direct feedstock and a carrier for green hydrogen. It is vital for cleaning up the production of fertilizers and chemicals, and it can be "cracked" back into hydrogen for use in refineries. Over time, it is also seen as a leading candidate for a zero-carbon fuel in the maritime shipping industry. The EU has created a guaranteed market for these molecules, with RED III mandating that at least 42% of hydrogen used in industry must be RFNBO-certified by 2030.

Michael Lewis, CEO of Uniper, described the deal as a cornerstone of the company's future. "This agreement with AM Green Ammonia is a key building block in our strategy to provide our customers with reliable access to renewable and low carbon molecules at scale," he said. "We are proud to help establish one of the first large-scale supply corridors between India and Europe."

Lewis also noted the economic viability of the pathway, stating that green ammonia "offers among the lowest CO2 avoidance costs compared to other renewable and low carbon molecules – thanks to its mature production process and the absence of carbon feedstock requirements."

John Roper, CEO of Uniper's Middle East operations, added that the agreement demonstrates what is possible through genuine partnership. "This landmark agreement shows that by aligning supply, certification and demand-side incentives, we can bring competitive, renewable molecules to European industry at scale – delivering real emission reductions."

The deal sets a clear precedent, moving beyond pilot projects and memoranda of understanding to large-scale, commercially binding agreements that can underwrite the massive capital investment required for the energy transition. This concrete supply chain, connecting Indian production with European industrial demand, serves as a tangible blueprint for decarbonizing the global economy.

📝 This article is still being updated

Are you a relevant expert who could contribute your opinion or insights to this article? We'd love to hear from you. We will give you full credit for your contribution.

Contribute Your Expertise →
UAID: 10151