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KP Group has entered into a partnership with South Korea's AHES and GH2 Solar Ltd to establish a green ammonia production facility in India, producing 100,000 metric tons annually. The collaboration, formalized through an MoU, involves KPI GH managing the facility while AHES and GH2 provide technical support and arrange offtake agreements for international markets, including South Korea and Japan. Ammonia pricing will follow international benchmarks. The project will utilize renewable energy and infrastructure from KP Group subsidiaries, leveraging their 30 years of expertise and over 1.9 GW installed capacity, marking a significant step in India's sustainable energy development.
KP Group has partnered with South Korean company AHES and GH2 Solar Ltd to establish and operate a green ammonia production facility in India, targeting an annual capacity of 100,000 metric tons. The partnership has been formalized through a Memorandum of Understanding signed by KPI Green Hydrogen & Ammonia Pvt Ltd (KPI GH), a KP Group company, along with AHES Co Ltd and GH2 Solar Ltd. Advertisement
The agreement outlines the production and supply of 100,000 TPA of green ammonia. AHES will act as a direct offtaker, while both AHES and GH2 will facilitate offtake agreements for the produced ammonia in international markets, including South Korea and Japan. Pricing for the ammonia will be linked to international ammonia benchmarks, ensuring the product remains competitively positioned in the global market.
The partnership is planned as a 15-year strategic collaboration, underlining KP Group's focus on sustainable energy solutions. Faruk Patel, Chairman and Managing Director of KP Group, emphasized that the initiative reflects the company's commitment to advancing clean energy innovation in India and internationally. He highlighted that with KPI GH managing the facility and the support of AHES and GH2, the project is setting new benchmarks for green ammonia production and international collaboration.
The facility will operate using renewable energy and infrastructure provided by KP Group entities, including KPI Green Energy Ltd, KP Energy Ltd, and KP Green Engineering Ltd. This ensures that the ammonia production will be based on sustainable, low-carbon feedstock. The integrated approach benefits from KP Group's three decades of experience in renewable energy, with a current installed capacity of over 1.9 GW and another 3.9 GW under development.
The initiative also positions India as a growing hub for green ammonia production, responding to increasing international demand for low-carbon energy solutions. By linking production to global markets and adhering to international pricing benchmarks, the project aligns with global sustainability trends while reinforcing KP Group's leadership in renewable energy.
Source PTI
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