AM Green’s $1 Billion Biofuels Blitz: Acquiring Stakes in Assam Bio Refinery and Finnish Biotech Firm

AM Green, established by Mahesh Kolli and Anil Kumar Chalamalasetty of Greenko Group, plans to invest $1 billion in the biofuels sector. They intend to acquire a 50% stake in Assam Bio Refinery Pvt. Ltd from Finnish companies Fortum Oyj and Chempolis Oy. Currently, Oil India Ltd subsidiary Numaligarh Refinery Ltd (NRL) holds 50% in Assam Bio Refinery, while Fortum and Chempolis hold around 40% and 10% respectively. AM Green also plans to buy Chempolis Oy, a biotechnology firm based in Finland.

AM Green has already signed exclusivity agreements for these transactions. The company aims to expand in the biofuel space, with plans to establish two more biofuel plants in India.

Bio Ethanol from Bamboo

AM Green will produce second-generation (2G) biofuels, made from non-food biomass like plant materials and animal waste. The Assam refinery will use 300,000 tons of bamboo annually 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 is the technology provider for this 2G biofuel plant.

Broader Expansion

In addition to biofuels, AM Green plans to venture into green hydrogen, green ammonia, e-methanol, sustainable aviation fuels, and other high-value chemicals. Malaysia’s Petronas unit, Gentari Sdn Bhd, plans to invest $1.5 billion for a 30% stake in AM Green Ammonia Holdings. AM Green has also signed a deal with Yara Clean Ammonia for supplies from its green ammonia plant in Kakinada, Andhra Pradesh.

India’s Biofuel Goals

India aims to achieve 20% ethanol blending in petrol by 2025-26, advancing from the initial target of 2030. The global ethanol market, valued at $99.06 billion in 2022, is projected to grow to $162.12 billion by 2032.

Fortum’s Strategic Shifts

Fortum announced it would explore strategic options, including potential divestments, for its Circular Solutions businesses, which include Chempolis. Fortum’s core operations focus on clean energy and decarbonizing industries in the Nordics. Recently, Fortum agreed to sell its recycling and waste business to Summa Equity for €800 million.

Conclusion

AM Green’s significant investment in biofuels aligns with India’s push towards green energy and sustainable solutions. This move positions the company to play a crucial role in the country’s biofuel and broader green energy ambitions.