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The MoU will support the production of green eMethanol. Image: GAIL.
Indian state-owned energy company GAIL has partnered with green gases producer AM Green (AMG) to jointly explore establishing 2.5GW of hybrid solar PV and wind projects across India.
Formalised via signing a memorandum of understanding (MoU), both parties also plan to conduct studies for the long-term supply of approximately 350,000 thousand metric tonnes per annum of carbon dioxide (CO2) produced by GAIL in its gas processing plants.
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GAIL said this CO2 would be used to produce eMethanol, an environmentally friendly fuel that can help reduce carbon emissions and support a circular economy. Additionally, GAIL will have the option to invest in the proposed eMethanol project, establishing a strategic partnership that aligns with both companies’ goals of promoting sustainable energy solutions.
Rajeev Singhal, director of business development at GAIL, believes that developing renewable energy generation projects will help reduce India’s carbon footprint by enabling the production of green gases.
“By facilitating the supply of CO2 for eMethanol production, we are taking a proactive approach to reduce carbon emissions and support alternative fuel development. Development of renewable energy projects will support reducing carbon footprint of the country and advancing India’s transition to a greener energy landscape. The partnership between GAIL and AMG is set to augment technological innovation in India while also promoting economic growth and environmental sustainability.” Singhal said.
AM Green, owned by Indian renewable energy company Greenko Group, has lofty ambitions to become “one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world”. It has already set its sights on producing five million tonnes per annum of green ammonia by 2030, representning around one million tonnes per annum of green hydrogen.
The companies said the hybrid solar PV and wind projects, combined with Greenko’s upcoming pumped hydro energy storage projects, which total 3.3GW, are poised to supply round-the-clock power to the end users, including the proposed eMethanol project.
Mahesh Kolli, group president of AM Green, said the deal will contribute to India’s ambition to become a major exporter of green molecules for industrial decarbonisation.
“This partnership demonstrates AM Green’s emerging leadership position as a global clean energy transition solutions platform while contributing to India’s ambition of emerging as an exporter of reliable, sustainable and lowest cost green molecules and its derivatives accelerating industrial decarbonisation globally. The production of green methanol shall also help in decarbonisation of hard to abate sectors like shipping, steel, cement, and more,” Kolli added.
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