AM Green Wins €585M H2Global Ammonia Deal With Germany

AM Green has secured a 10-year renewable ammonia purchase agreement worth at least €585 million after winning the Asian lot in Germany-backed H2Global’s latest auction, creating another long-term export route for Indian green ammonia into Europe.

Hintco, the trading arm of H2Global, named AM Green the sole winner of the Asian lot on September 30. The agreement covers Renewable Fuels of Non-Biological Origin (RFNBO)-compliant ammonia produced at AM Green’s Kakinada project in Andhra Pradesh, India.

First deliveries under the H2Global agreement are expected in 2029. The ammonia will be shipped directly from Kakinada Seaports, which is located next to the production complex.

The award gives AM Green another major long-term offtake channel after the company signed a separate agreement with Uniper earlier in 2026 for up to 500,000 tonnes per year of renewable ammonia from its Indian projects.

AM Green wins the H2Global Asian lot

Hintco said AM Green ranked first in a competitive bidding process for the Asian lot and will supply renewable ammonia to Germany under a 10-year Hydrogen Purchase Agreement.

Hintco may purchase additional quoted volumes beyond the minimum contractual commitment using proceeds generated from resale of the ammonia in the European market.

The company has not yet disclosed the exact contracted tonnage or unit purchase price for AM Green’s winning bid. Hintco said full results will be released before the end of 2026 after other regional H2Global tenders are completed.

This is an important limitation when comparing the new contract with earlier renewable-ammonia auctions: the €585 million figure is a minimum contract value, not a disclosed price per tonne.

H2Global uses long-term contracts to make green ammonia bankable

The H2Global mechanism is designed to address one of the biggest problems facing renewable hydrogen and ammonia projects: producers need long-term revenue certainty before financing large industrial plants, while buyers often do not want to commit to high green-product premiums for decades.

Hintco sits between the two sides.

It signs long-term purchase contracts with producers and then resells the product through shorter-term auctions to European buyers. Public funding covers the expected difference between the producer purchase price and the resale price.

The latest H2Global tender includes regional lots for Asia, Africa, North America, and South America/Oceania, as well as a global hydrogen lot. Tender 2 has a total funding envelope of about €2.9 billion.

The Asian lot covers RFNBO hydrogen, ammonia and methanol produced in Asia and the Middle East. AM Green’s ammonia bid was selected as the sole winner for the region.

The Kakinada plant converts an existing fertilizer complex

The ammonia for the H2Global contract will come from AM Green’s Kakinada project, where the company is converting an existing natural-gas-based ammonia and urea complex into a renewable-ammonia production facility.

AM Green reached a final investment decision on its first large Kakinada green-ammonia phase in 2024. The company is developing the site as a world-scale export project and has said the first major production block will have capacity of approximately 1 million tonnes per year.

The conversion model is significant for the fertilizer industry because it combines existing ammonia and urea infrastructure with a new renewable-hydrogen feedstock system rather than building the entire industrial platform from scratch.

The project uses pressurized alkaline electrolyzers to produce hydrogen from renewable electricity. That hydrogen is then used as feedstock for ammonia synthesis instead of hydrogen derived from natural gas.

AM Green has also stated a longer-term objective of building up to 5 million tonnes per year of renewable ammonia capacity across multiple Indian locations.

Fertilizer Daily reported earlier this year that AM Green is also developing a 1-million-tonne-per-year renewable ammonia project at Thoothukudi in Tamil Nadu, extending its export strategy across southern India.

Round-the-clock renewable power is central to EU compliance

European RFNBO rules require more than simply connecting an electrolyzer to renewable power.

Projects must satisfy detailed requirements for renewable electricity sourcing, including additionality and temporal and geographic correlation between renewable electricity production and hydrogen generation.

AM Green plans to meet these requirements using a round-the-clock renewable power architecture combining wind, solar and pumped-hydro storage.

The Kakinada project previously received CertifHy pre-certification for alignment with EU RFNBO requirements. The company has said this certification process assessed the plant’s renewable-hydrogen production system against European rules governing additionality and hourly matching.

That compliance is critical because the H2Global contract is specifically for RFNBO product rather than generic low-carbon ammonia.

The deal adds to AM Green’s 500,000-t/yr Uniper offtake

The H2Global award is not AM Green’s first major European offtake agreement.

In January 2026, Uniper and AM Green signed a binding long-term agreement covering up to 500,000 tonnes per year of RFNBO renewable ammonia from AM Green’s Indian projects.

Uniper said first shipments under that agreement could begin as early as 2028 from AM Green’s first 1-million-tonne-per-year Kakinada plant.

The H2Global contract has a later first-delivery date of 2029 and specifically identifies Kakinada Phase 2.

Together, the two agreements improve the commercial visibility of the Kakinada development by securing multiple European routes for future production.

Why long-term offtake is the main bottleneck for green ammonia

Large renewable-ammonia projects have been announced around the world, but relatively few have reached construction or secured binding long-term buyers.

Fertilizer Daily previously examined this financing problem: announced low-carbon ammonia capacity is far larger than the volume backed by final investment decisions and firm offtake.

The problem is not primarily ammonia synthesis technology. Conventional ammonia production is mature, and large electrolyzers are commercially available.

The harder question is whether buyers will commit to paying a premium for low-carbon ammonia for long enough to support project financing.

Long-term contracts from Uniper and H2Global reduce that risk for AM Green.

This is particularly important for projects built around renewable electricity because their economics are driven by large upfront investments in:

• wind and solar generation;
• electrolyzers;
• energy storage;
• water treatment;
• hydrogen handling;
• ammonia synthesis;
• storage and export infrastructure.

The first H2Global ammonia auction established a €1,000/t European benchmark

The new AM Green award follows H2Global’s earlier pilot renewable-ammonia auction.

In that first round, Fertiglobe won a contract to supply renewable ammonia from Egypt to Europe. H2Global reported a delivered contract price of approximately €1,000 per tonne, with an average FOB product price of €811.30 per tonne.

The pilot contract covered a maximum cumulative supply commitment of almost 398,000 tonnes through 2033.

That result became an important early benchmark because conventional ammonia at the time was substantially cheaper.

However, the Fertiglobe price cannot yet be directly compared with the new AM Green award. Hintco has not published AM Green’s unit price or contracted tonnage and will only provide the full Tender 2 results later in 2026.

The eventual disclosure will show whether competitive renewable-ammonia pricing has improved since the pilot auction.

India is building both domestic and export green-ammonia markets

India is pursuing renewable ammonia through two parallel strategies.

Domestically, the government’s SIGHT program is using competitive auctions to replace conventional ammonia used in fertilizer plants with renewable supply.

India has already contracted hundreds of thousands of tonnes per year of green ammonia for domestic fertilizer plants, with discovered prices substantially below early European green-ammonia benchmarks.

At the same time, developers including AM Green and ACME are building export projects designed to serve Europe and Japan.

This dual-market strategy gives developers more potential buyers and allows projects to allocate supply between fertilizer, chemicals, shipping and energy uses as demand evolves.

AM Green’s Kakinada location is particularly suited to export because the production complex sits next to port infrastructure, reducing inland transport requirements for ammonia.

What the deal means for the fertilizer industry

Most ammonia produced globally is still consumed inside the fertilizer value chain, especially in urea, ammonium nitrate, DAP, MAP and other nitrogen-containing fertilizers.

Renewable-ammonia projects are therefore closely linked to fertilizer-market economics even when the initial customer is an energy trader or industrial buyer.

The AM Green contract matters to fertilizer producers for three reasons.

First, it creates another commercial benchmark for low-carbon ammonia. Once Hintco publishes full pricing and volume data, fertilizer producers will have a new reference point for the cost of RFNBO feedstock delivered into Europe.

Second, it creates competition for future ammonia supply. Renewable ammonia can serve fertilizer, chemical, shipping and hydrogen markets. Long-term energy-sector contracts may therefore compete with fertilizer buyers for some early low-carbon volumes.

Third, it shows that existing fertilizer assets can be converted. Kakinada began as a conventional ammonia and urea complex. Its transition toward renewable hydrogen provides a potential model for other fertilizer sites with existing synthesis, storage and port infrastructure.

Germany is using public procurement to create an import market

Germany expects imported renewable hydrogen and hydrogen derivatives to play an important role in industrial decarbonization because domestic renewable-energy resources are unlikely to cover all future demand.

Instead of waiting for a spot market to develop, H2Global uses public funding to create long-term purchase commitments now.

The mechanism can absorb part of the early cost premium while producers build scale and European buyers develop demand.

For India, the arrangement creates an export market for renewable power converted into a transportable chemical commodity.

For Germany, it diversifies future ammonia and hydrogen supply beyond conventional fossil-fuel-based producers.

What happens next

The most important unanswered question is the commercial price of AM Green’s winning bid.

Hintco has said it will publish full results before the end of 2026 once the remaining regional Tender 2 auctions are completed.

• publication of AM Green’s contracted volume and unit purchase price;
• construction progress at Kakinada;
• commissioning of electrolyzer and renewable-power infrastructure;
• RFNBO certification of commercial production;
• first Uniper shipments expected from 2028;
• first H2Global shipments expected from 2029;
• resale auctions for the ammonia in Europe;
• additional AM Green offtake agreements for the remaining Kakinada capacity.

If AM Green can deliver at a materially lower price than the first H2Global pilot contract, the Tender 2 result could become one of the clearest signs yet that renewable ammonia is beginning to move down the cost curve from subsidized demonstration projects toward industrial-scale trade.

Frequently asked questions

Sources: Hintco, H2Global Tender 2, Uniper, AM Green