Gentari, GIC Holdings To Invest $1.75 Bn In AM Green Ammonia Holdings


According to media reports, Gentari and GIC Holdings will invest about USD 1.75 billion in AM Green Ammonia Holdings, a company owned by Greenko Group Founders Mahesh Kolli and Anil Kumar Chalamalasetty. This could be one of the world’s largest energy-transition deals.

Gentari, a unit of Malaysia’s Petronas, will invest USD 1.5 billion in AM Green Ammonia Holdings, giving them a 30 per cent stake in the company. The founders will retain the remaining 70 per cent ownership, while Singaporean wealth fund GIC will invest USD 250 million. Citigroup is acting as the financial adviser for this transaction.

Soon, these entities are expected to announce a total investment plan of USD 5.5 billion. This plan includes both equity and debt funding from all stakeholders, including the promoters. The goal is to produce five million tonnes of green ammonia annually in several Indian states: Tamil Nadu, Karnataka, Andhra Pradesh, Himachal Pradesh and Gujarat.

Additionally, Gentari plan to export green ammonia to South Korea, Japan, Singapore and Germany as it can be produced at a low cost compared to other global producers.

Bloomberg had earlier reported about Petronas nearing a deal to acquire a minority stake in the ammonia unit of India’s AM Green for about $1.6 billion.

Global oil companies like Shell, TotalEnergies and Thailand’s PTT Group are already involved in India’s green energy sector while the traditional hydrocarbon industry faces disruptions. Gentari is also looking for opportunities in India’s green energy transition. GIC is a shareholder in the Greenko Group, along with other investors like Abu Dhabi Investment Authority and Japan’s ORIX Corp.

This AM Green Ammonia Holdings deal comes after India announced its target to achieve net zero carbon emissions by 2070 at the United Nations Framework Convention on Climate Change (COP26). Exporting green ammonia will also help OECD countries in meeting their net-zero targets.

In June last year, Petronas created Gentari to promote clean energy and develop a renewable energy capacity of 40GW. Gentari plans to produce 1.2 mtpa of green hydrogen and install electric vehicle charging points in Malaysia and India.

Greenko has invested USD 7.5 billion in building India’s largest clean energy portfolio, which currently has 7.3 gigawatts (GW) of capacity. Greenko is also constructing 50 gigawatt-hours (GWh) of pumped storage technology for its energy storage cloud platform, which aims to reach 100GWh.

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