BASF/AM Green to evaluate low-carbon chemicals/green ammonia opportunities in India

Posted on November 7, 2024

BASF/AM Green to evaluate low-carbon chemicals/green ammonia opportunities in India

German chemicals firm BASF and AM Green B.V. have entered a memorandum of understanding (MoU) to jointly evaluate and develop business opportunities for low-carbon chemicals produced exclusively with renewable energy, and the corresponding value chains in India.

Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE, and Mahesh Kolli, Group President of AM Green, signed the agreement in the context of the Asia-Pacific Conference of German Business 2024 hosted in New Delhi, India, recently.

Under the MoU, BASF and AM Green intend to conduct feasibility studies on low-carbon chemicals production in India including a joint evaluation of potential technologies. The cooperation also includes a non-binding letter of intent for the offtake of 100,000 tonnes/year of ammonia produced exclusively with renewable energy including energy from pumped storage projects from AM Green’s plants in different locations in India.

This ammonia will meet EU standards for renewable fuels of non-biological origin (RFNBO) as defined in the Renewable Energy Directive (RED III). Some of AM Green’s facilities have already been pre-certified for RFNBO compliance through the CertifHy voluntary certification scheme. Pre-certification for AM Green’s other facilities is currently underway.

“We are committed to the sustainable transformation of the industries we serve. We are convinced that India is the right place to explore low-carbon chemical production together with our partner AM Green,” said Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE.

Mahesh Kolli, Group President of AM Green said, “We are delighted to partner with a global chemical leader like BASF to propel the green transformation in the industry. AM Green’s vision of deepening capabilities in downstream value chains of green molecules is core to this partnership with BASF. AM Green and BASF partnership envisages to cater to multiple chemical downstream and associated consumer industries by providing key green molecule feedstocks to produce chemicals, materials and products in the markets served by BASF.”

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German chemical firms Evonik and BASF have announced an agreement for the first delivery of BASF’s ammonia BMBcert grade. This continued collaboration highlights the commitment of both companies to providing products with a reduced product carbon footprint (PCF). With its ammonia BMBcert, BASF offers Evonik a solution with a PCF that is at least 65% lower than conventional products. Both, BASF and Evonik are broadening their product portfolios by introducing ammonia-based products that utilise a biomass balance approach. These products are readily available via existing sales channels and fully integrated into the ERP (Enterprise Resource Planning) systems of both companies. “Evonik and BASF share the same vision: We are convinced that the chemical industry can transform and replace fossil with renewable feedstocks and utilities. The supply with ammonia BMBcert is a big milestone for both of us”, said Dr. Jens Aßmann, Vice President Business Management Ammonia Value Chain and Operations Amino Resins at BASF. Evonik has received its first shipment of ammonia BMBcert produced by BASF. By integrating BASF’s ammonia BMBcert into its ISCC (International Sustainability and Carbon Certification) PLUS certified production processes, Evonik demonstrates its commitment to a more sustainable economy and achieving its ambitious emissions reduction targets. By 2030, Evonik aims to reduce Scope 1 and 2 emissions by 25% and Scope 3 emissions by approximately 11% from 2021 levels, targeting climate neutrality by 2050, in line with the Paris Agreement and validated by Science Based Target Initiative (SBTi). Evonik plans to incorporate ammonia BMBcert in its production of sustainable products like Vestamin IPD eCO and Vestamid eCO Polyamide 12. The “eCO” label reflects Evonik’s goal to reduce CO2 through a mass balance approach using renewable feedstocks as drop-in solutions in existing systems and production processes. These eCO grades provide customers with sustainable products without compromising performance. Conventional, Vestamin curing agents for epoxy resin systems with typical applications in industrial flooring, marine and anticorrosive paints, can be seamlessly replaced by Vestamin IPD eCO, it adds. The same proves true for Vestamid eCO Polyamide 12, which offers tailored, high-performance polyamide for applications like shoe soles, sunglasses, gas pipes, safety-related automotive parts and many more. "We are excited to partner with BASF to source ammonia with a reduced carbon footprint for our eCO products. This collaboration underscores our commitment to environmental stewardship and our ability to innovate in a rapidly changing market”, said Silvia Torrado, Global Procurement Director for Base Petrochemicals at Evonik. BASF applies a biomass balance approach to replace fossil resources at the beginning of the production process with certified biomethane from biowaste raw materials which are attributed to the product. The mass-balanced product is certified according to ISCC PLUS standards. In addition, BASF is using electricity from renewable sources for the manufacture of the ammonia, further reducing its PCF. By partnering with like-minded suppliers like BASF, who share a strong commitment to sustainability, Evonik is dedicated to creating value-added solutions for its customers, and works to go beyond chemistry to improve life, today and tomorrow. As part of its Next Generation goals, the company aims to derive 50% of sales from products and solutions that have a strongly positive sustainability profile, by 2030.

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