In A Biggest Fundraise, Greenko Group Founders-owned AM Green Secures $1.75 Bn for One of the World's Largest Green Ammonia Platform

AM Green Ammonia Holdings (AMG Green), a company founded by Hyderabad based renewables group, Geenko, has secured $1.75 billion from Gentari, the clean energy division of Malaysia's Petronas, and Singapore’s GIC sovereign wealth fund, to develop one of world's largest green ammonia platform.

With investment of $1.60 billion, Petronas will secure a 30% stake in AM Green, valuing the newly formed company at $5 billion. The Greenko founders —Mahesh Kolli and Anil Kumar Chalamalasetty— will hold the remaining 70% along with Singaporean wealth fund GIC, which will invest $250 million.

This capital raise by AM Green is said to be one of the top five biggest capital raises in India in 2023 and among the world’s largest energy-transition deal.

According to a joint press release issued by Gentari and AM Green, the project aims to produce 5 million tonnes of green ammonia each year (MTPA) until 2030. This is equivalent to around 1 MTPA of green hydrogen and will account for 20% of India’s target for green hydrogen production by 2030 or 10% of Europe’s imported renewable hydrogen targets.

The green ammonia will be produced by a unit of AM Green — AM Green Ammonia Holdings. Post-investment from Gentari, GIC and AM Green, the unit will be a fully funded platform that will invest, in phases, in the Indian regions of Andhra Pradesh, Tamil Nadu, Gujarat, Karnataka, and Himachal Pradesh.

AM Green Ammonia will become one of the world’s leading producers of green ammonia.

AM Green will also produce green molecules such as green methanol, green caustic soda, green chlorine, bio fuels and various down stream high value green chemicals under its AM Green Molecules subsidiary.

Additionally, AM Green will also house a joint venture with John Cockerill of Belgium to manufacture electrolysers in its AM Green Technology & Solutions subsidiary; supplying about 6.5 GWs of electrolysers to AM Green Ammonia by 2030.

The first shipments of green ammonia will begin by late 2025 and will serve key OECD markets, including Germany, Japan, South Korea and Singapore.

Earlier in June, in Asia's largest equity round ever raised by any green energy company, Avaada Group had successfully closed $1.3 billion funding round bolstering its green hydrogen, green methanol, green ammonia, solar manufacturing and renewable power generation ventures.

Renewable Energy Firm Greenko Raises $495 Mn from GIC and Abu Dhabi Investment Authority

Hyderabad, Andhra Pradesh-based renewable energy company Greenko Energy Holdings on Tuesday announced that it has raised $495 million in a fresh round of equity based funding from an affiliate of GIC, a government of Singapore-owned investment fund, and Abu Dhabi Investment Authority (ADIA).

The $495 million raised will be invested in 2.4 giga watt (GW) of storage capacity. Post the investment, GIC will continue to remain as the majority shareholder of Greenko.

“Greenko Energy Holdings today announced the signing of definitive agreements for a primary equity raising of US$ 495 million from an affiliate of GIC and an entity that is ultimately wholly-owned by the ADIA,” the company said in a statement.

The development comes at time when Renew Power, an another India-based renewable energy IPP (Independent Power Producer), is reportedly considering raising funds through asset sales, after dropping out its plan for an initial public offering (IPO).

So far, Greenko has now secured equity commitment for two storage projects with total capacity of 2.4 GW, which includes 1.2 GW in Pinnapuram and 1.2 GW in Saundatti. The company expects these projects to become operational in 2022.

In March 2017, the company had raised $155 million (Rs 1,010 crore) from GIC and ADIA, which was one of the largest fund-raising exercises in the renewable energy sector at that time.

Currently, Greenko has an operational capacity of 4.2 GW in the country and another 7 GW is under construction. The company is planning to increase its capacity further through development of greenfield assets.

“These( storage) projects will have overall capital outlay of $2 billion. Greenko has also secured financial closure for the Pinnapuram Storage Project and are in advanced discussions for the Saundatti Project,” Greenko further added in its statement.

Founded in 2004, by Anil Chalamalasetty, Greenko group is listed on the London Stock Exchange's Alternative Investment Market (AIM) and has its asset base in India.

The group has also acquired two renewable energy companies so far and these are -- New Delhi based Orange Renewable, which Greenko acquired for $1 billion, in June last year, and Hyderabad-based Pennar Industries Ltd in August 2017 for an undisclosed amount.