Japan’s Mitsui plans investment in AM Green’s low-carbon aluminium push
NEW DELHI: AM Green, backed by Greenko’s founders, said it has signed a memorandum of understanding (MoU) with Japan’s Mitsui & Co for strategic collaboration on energy transition initiatives and potential investment avenues in low-carbon aluminium.
“Within the scope of the Memorandum of Understanding signed with Mitsui, the parties will evaluate the potential investment in the AM Green Metals value chain. Mitsui’s investment will support the equity capital requirements to build the world’s first integrated green aluminum production platform,” the statement said.
The partnership is part of AM Green’s $20 billion capital spending strategy to transform electrons into metals and molecules. The proposed investment amount was not specified.
AM Green, through its wholly owned subsidiary AM Green Aluminum Metals and Materials (AM Green Metals), is building a primary aluminum smelter with a capacity of 1 million tonnes per annum (mtpa), along with 2 mtpa alumina refining and mining operations.
Both the smelter and refinery will be powered by renewable wind and solar energy, powered by pumped hydro storage, and produce green aluminum products. Last month, AM Green signed agreements with the Andhra Pradesh government for valuable projects. ₹54,000 crore, of which ₹44,000 crore will be diverted to 1 mtpa aluminum plant.
Under the MoU, Mitsui will evaluate potential investment opportunities in the AM Green Metals value chain. The two companies will also explore procurement arrangements for low-carbon aluminum as well as the supply of auxiliary materials for the green aluminum smelter and alumina refinery.
Mahesh Kolli, founder of Greenko Group and AM Green, said: “AM Green is building globally competitive platforms across molecules and materials to enable industrial decarbonization at scale. We are pleased to partner with Mitsui to explore ways of collaboration that can accelerate low-carbon aluminum and expand market access for a broader range of green products.”
This development becomes important as many developed economies, including the European Union, plan to impose a carbon tax on imports and introduce stricter compliance norms through the Carbon Border Adjustment Mechanism (CBAM).
Earlier this year, global mining giant Rio Tinto and India’s AMG Metals & Minerals signed a Memorandum of Understanding to build the world’s largest renewable energy-powered aluminum plant in India with an investment of approximately $6 billion. In May, state-run Coal India Ltd signed an MoU to supply 4,500 MW of renewable energy to AM Green’s green ammonia plants.
India’s energy transition agenda is attracting the attention of global investors. AMG Metals & Materials is a subsidiary of AM Green, founded by Greenko Group founders Anil Chalamalasetty and Kolli.
India is the world’s second largest aluminum producer after China and exports both commodities and derivative products to the US and the EU. The country’s aluminum market currently produces approximately 5 million tonnes per year. Companies in the steel and aluminum sectors are actively exploring ways to decarbonise their operations and remain globally competitive.
AM Green is also building production facilities for green molecules including green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels and other high-value chemicals aimed at decarbonising hard-to-reduce industries.
In September last year, another AM Green subsidiary, AM Green Ammonia BV, partnered with Germany’s RWE Supply & Trading to supply green ammonia. In January this year, AM Green collaborated with global logistics giant DP World to establish advanced logistics and storage infrastructure for the export of green hydrogen and green ammonia.
Mint had previously reported that Malaysia’s Gentari Sdn Bhd and Singapore’s GIC Holdings Pte Ltd planned to invest $1.75 billion in AM Green Ammonia Holdings, making it one of the world’s largest energy transition deals.
Chalamalasetty and Kolli positioned AM Green as a new energy transition and decarbonization platform. The company is committed to creating 5 mtpa of green ammonia capacity by 2030 (1 mtpa is under construction), representing one-fifth of India’s green hydrogen production target and 10% of Europe’s green hydrogen import target.
The green aluminum market is expanding amid global efforts to curb climate change. A report published by JMK Research in April predicted that India’s aluminum sector will need 18-20 GW of solar and wind capacity by 2030, requiring an estimated investment of $5 billion.
