(Bloomberg) — Singapore’s sovereign wealth fund GIC Pte and a unit of Malaysian energy giant Petroliam Nasional Bhd. will invest in a project that aims to produce 5 million tons of green ammonia a year from locations across India.

Gentari, Petronas’ renewable energy arm, and an affiliate of GIC will invest in the project being developed by AM Green, set up by the founders of Indian clean energy company Greenko Group, the companies said in a joint statement.

AM Green will look to reach the full capacity target, equivalent to around 1 million tons of green hydrogen a year, by 2030, according to the statement. Exports of green ammonia to markets including Singapore, Japan, South Korea and Germany will start by late 2025.

Green ammonia and hydrogen are expected to play a bigger role in electricity generation, shipping and hard-to-abate industries like oil refining, chemicals, fertilizer and steel in the coming years. In India, which is aiming for net zero by 2070, AM Green joins heavyweights Adani Group and Reliance Industries Ltd. in announcing ambitious plans for green hydrogen, which can be converted to ammonia for easier transportation.

“Achieving this scale of production will place the new venture among the world’s pioneers in large scale and cost-competitive green ammonia production,” the companies said.

Bloomberg reported last month that Petronas was nearing a deal to acquire a minority stake in the ammonia unit of AM Green for about $1.6 billion.

Citigroup Global Market India Pvt. Ltd. and Cyril Amarchand Mangaldas acted as financial and legal advisors to AM Green for the transaction. Gentari was advised by Bank of America Securities, the Malaysian company said in a separate statement.

–With assistance from Baiju Kalesh.

©2023 Bloomberg L.P.

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