SJVN’s Subsidiary Partners with AM Green Ammonia Private Ltd

On June 26, 2024, SJVN Ltd announced to the stock exchanges that its wholly-owned subsidiary, SJVN Green Energy Limited (SGEL), had signed a Memorandum of Understanding (MoU) with AM Green Ammonia (India) Private Limited.

AM Green Ammonia (India) Private Limited, part of the Greenko Group, is developing one of the world’s largest Green Ammonia platforms in Kakinada, Andhra Pradesh.

The project will be executed in two phases, starting with a capacity of one million tons per annum (MTPA) and expanding to five MTPA by 2030, which is equivalent to one million tons per annum of hydrogen. According to the MoU, the parties will collaborate on the long-term supply/sourcing of renewable energy for these Green Ammonia plants under mutually agreed terms.

SGEL plans to establish 4,500 MW of renewable energy projects in India, including 2,500-3,000 MW of solar projects and 1,500-2,000 MW of wind projects in three phases, ensuring the supply of about 11,500 million units annually.

SGEL and AM Green Ammonia will explore innovative commercial frameworks to ensure competitive tariffs and adequate returns for SGEL, including the possibility of offering dollar-denominated tariffs. The parties have agreed to enter a definitive agreement soon to formalise the next steps. SGEL currently manages a renewable energy portfolio of about 7.2 GW at various stages of development, including operation, construction, and pre-construction. This MoU marks SGEL’s first foray into the commercial and industrial segment.

The signing ceremony took place in Delhi in the presence of Sh. Akhileshwar Singh, Director (Finance) of SJVN. The MoU was signed by Sh. Ajay Singh, CEO of SGEL, and Sh. Bhuwan Chandra Tripathi, CEO of AM Green Ammonia, along with Sh. A M Jha, CFO of SGEL, Sh. Jitendra Yadav, GM (F) of SJVN, and other senior officials from SJVN/SGEL and the Greenko Group.

About SJVN Ltd

SJVN is involved in the business of power generation. The company is also involved in the business of offering consultancy for hydro-power projects.

On June 27, 2024, the share price of SJVN Ltd opened at ₹131.00, touching the day’s high at ₹133.41, as of 9:33 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.