As part of the MoU, the two companies will conduct feasibility studies on technologies to produce low-carbon chemicals within India. Additionally, the agreement includes a non-binding letter of intent through which BASF would purchase 100,000 tons of green ammonia annually from AM Green’s facilities across India. The ammonia will be produced using renewable energy sources, including pumped storage projects.

The ammonia produced will comply with EU standards for Renewable Fuels of Non-Biological Origin (RFNBO) under the Renewable Energy Directive (RED III). Several of AM Green’s facilities are already pre-certified for RFNBO compliance through the CertifHy scheme, with certification underway for the remaining facilities.

Dr Markus Kamieth expressed BASF's commitment to transforming industries sustainably and emphasised that India provides an ideal setting for exploring low-carbon chemical production in partnership with AM Green. Mahesh Kolli highlighted the significance of working with BASF, a global leader in chemicals, to drive the green transition in the industry. He noted that AM Green’s goal of expanding green molecule capabilities aligns with BASF's vision, aiming to supply sustainable feedstocks for various chemical and consumer industries.