AM Green plans to invest $1 billion in its entry into second-generation biofuels with the establishment of two bio-ethanol plants, marking a new venture for the renewable energy firm. Additionally, the company plans to acquire a 50% stake in Assam Bio Refinery Pvt. Ltd from Finnish entities Fortum Oyj and Chempolis Oy, reported Live Mint.
Assam Bio Refinery is currently co-owned by Oil India Ltd subsidiary Numaligarh Refinery Ltd (NRL) and Fortum and Chempolis, holding 50%, 40%, and 10% stakes respectively. Concurrently, AM Green plans to acquire Chempolis Oy, based in Oulu, Finland, a biotechnology firm in which Fortum, a Finnish state-run utility, holds an interest.
AM Green, founded by Mahesh Kolli and Anil Kumar Chalamalasetty of Greenko Group, has already entered into exclusivity agreements for these transactions, report stated further quoting people on condition of anonymity.
“The exclusivity agreements for acquiring Fortum Oyj and Chempolis Oy’s stake in Assam Bio Refinery Pvt. Ltd, and also Chempolis Oy has been inked by AM Green. AM Green plans to expand in this space and in addition to Assam Bio Refinery, set up two more such plants in the country,” the report quoted sources as saying.
The bio-ethanol production will utilize non-food biomass such as plant materials and animal waste. The Assam JV will use 300,000 tons of bamboo every year to produce 50,000 tons of bioethanol, 19,000 tons of organic compound furfural, 11,000 tons of acetic acid, and 144 gigawatt hours of green energy.
Chempolis, the technology licensor for 2G biofuels, has pioneered the world’s first plant producing cellulosic ethanol and bio-based chemicals from bamboo.
AM Green’s strategic vision encompasses a presence in green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels, and high-value chemicals downstream, aligning with India’s robust interest in transitioning towards green energy solutions.
