Greenko in talks with REC to raise up to Rs 2,400 crore
Greenko Group is in talks with state-run power financier REC to raise funds for its green hydrogen and green ammonia project of 600 MW capacity, said two people close to the development. Greenko is looking to secure ₹2,200-2,400 crore from REC. Upon achieving financial closure, the company will enter into firm and definitive agreements with the lender, one of the persons said.
The project has an offtake agreement with Norway's Yara and received pre-certification for ammonia. An offtake agreement is a contract to buy or sell goods in advance of production, which will facilitate financing for the project. Greenko has signed a term sheet with Yara Clean Ammonia in May this year, the trader and distributor of ammonia, for the supply of renewable ammonia from Phase 1 of AM Green's ammonia production facility in Kakinada, Andhra Pradesh.
The borrowing would be made under AM Green, incorporated by Greenko founders Anil Chalamalasetty and Mahesh Kolli, which is setting up India's first green hydrogen, green ammonia project. The lending is to support the project's long-term supply agreement with Yara, the second person said. The tie-up with Yara is for up to half of renewable ammonia from phase I of AM Green's 1 MT a year production facility in Kakinada, as reported by ET earlier. REC had lent ₹4,000 crore to ACME Group for its green hydrogen and green ammonia project in Oman.
