Petroliam Nasional Bhd (Petronas), Singapore-based sovereign wealth fund GIC and the founders of Greenko Energy Holdings will invest USD two billion in AM Green. Of these total investments, around USD 1.5-1.7 billion is anticipated to come from Malaysia-based firm.

The investments will be utilised for the production of five million tpa of green ammonia (NH3) by 2028-2030 across four-five locations such as Kakinada, Tuticorin, Mangaluru and Kandla. This is expected to be among the world's largest green ammonia production networks with an estimated capital expenditure of USD 6-6.5 billion.

Once concluded, AM Green is likely to be the largest foreign direct investment till date in the rapidly growing sector as corporates and governments seek ways to decarbonise their energy and consumption footprint. AM Green is a platform which is being set up for green molecules, including green hydrogen, green ammonia and other chemicals.

AM Green will act as a holding company for these green initiatives. It will be kept separate from Greenko Energy, a leading renewable power producer. Petronas and GIC will be minority shareholders in the green ammonia unit of AM Green. Petronas will be a new strategic partner in the AM Green's ammonia vertical while the Singapore fund is doubling down.

The renewable energy for AM Green's ammonia sites will come from at least four upcoming mega projects, including the Pinnapuram Integrated Renewable Energy Project (IRESP) in Kurnool district of Andhra Pradesh. Similar projects are lined up in Madhya Pradesh, Rajasthan and Maharashtra.

The clean energy will be supplied and the electrolysers will be manufactured by other arms of AM Green, which will act as an umbrella platform for all such large-scale decarbonisation exercises.

In March 2022, a partnership had been tied up with Belgium-based John Cockerill to build a giga factory to make electrolysers. This partnership will be housed in AM Green, which would be ramp up to supply 6.5-7 GW electrolysers to the ammonia vertical.