BASF SE and AM Green B.V. have signed a memorandum of understanding (MoU) to explore the development of low-carbon chemicals in India, marking a significant step towards sustainable industrial practices in the region. The agreement was formalised by Dr. 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 in New Delhi.
The collaboration aims to assess and advance business opportunities for chemicals produced solely with renewable energy, focusing on creating value chains that align with sustainability goals. Under the MoU, both companies will conduct feasibility studies on the production of low-carbon chemicals in India, including evaluating potential technologies that could support these initiatives.
One of the key aspects of this partnership is a non-binding letter of intent for the annual offtake of 100,000 tons of ammonia generated exclusively through renewable energy sources. This includes energy sourced from pumped storage projects developed by AM Green at various locations across India. The ammonia produced will comply with EU standards for renewable fuels of non-biological origin (RFNBO), as outlined in the Renewable Energy Directive (RED III).
Several of AM Green’s facilities have already received pre-certification for RFNBO compliance through the CertifHy™ voluntary certification scheme, with additional facilities currently undergoing the pre-certification process.
Dr. Markus Kamieth emphasised the importance of this collaboration, stating, “We are committed to the sustainable transformation of the industries we serve. We are convinced that India is the right place to explore low-carbon chemical production together with our partner AM Green.” This sentiment reflects BASF’s broader strategy to enhance sustainability within its operations while addressing global environmental challenges.
Mahesh Kolli expressed excitement about the partnership, noting, “We are delighted to partner with a global chemical leader like BASF to propel the green transformation in the industry. AM Green’s vision of deepening capabilities in downstream value chains of green molecules is core to this partnership with BASF.” He further highlighted that the collaboration aims to supply key green molecule feedstocks for various chemical and material applications in the markets served by BASF.
This initiative aligns with the growing global emphasis on sustainability and renewable energy, particularly within the chemical sector, where traditional production methods have faced scrutiny for their environmental impact. By focusing on renewable energy sources for chemical production, BASF and AM Green aim to contribute to a more sustainable future while meeting the increasing demand for low-carbon products.
As both companies move forward with their plans, this partnership represents a significant opportunity for innovation in the chemical industry and demonstrates a collective commitment to sustainability. The successful implementation of low-carbon chemical production in India could serve as a model for similar initiatives in other regions, highlighting the potential for renewable energy to transform traditional industrial processes.
In conclusion, the MoU between BASF and AM Green not only signifies a commitment to sustainable development but also reinforces the importance of collaboration in addressing global environmental challenges. The partnership is set to pave the way for advancements in low-carbon chemical production, with potential benefits for both the industry and the environment.