Gail, AM Green forge 350 KTPA e-methanol deal to drive clean energy growth

State-run Gail (India) Ltd and AM Green Group, backed by the founders of Greenko Group, have inked a partnership to develop clean energy projects, including the supply of 350 kilotonnes per annum (KTPA) of carbon dioxide for e-methanol production. 

The deal, which also includes hybrid renewable energy projects, marks a significant step in advancing India’s green energy transition and decarbonization efforts, the companies announced in a joint statement.

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E-methanol, also known as green methanol, is a sustainable fuel produced by combining green hydrogen from renewable sources with captured carbon dioxide. This fuel plays a pivotal role in reducing carbon emissions, especially in hard-to-abate sectors like shipping, steel, and cement. The partnership underscores both companies' commitment to promoting cleaner energy alternatives.

Sumit Kishore, executive director (Business Development, Exploration and Production) at Gail, and Mahesh Kolli, group president of AM Green, signed the deal.

Expanding renewable capacity

In addition to e-methanol production, the companies are exploring solar and wind hybrid renewable projects of up to 2.5 gigawatts (GW) across India. These projects, combined with Greenko’s upcoming pumped storage projects, will provide round-the-clock power, including to the proposed e-methanol facilities.

As part of the agreement, Gail will supply around 350 KTPA of carbon dioxide generated from its gas processing plants. This carbon will be used to produce e-methanol, further advancing a circular economy. Gail also has an equity option in the e-methanol project, ensuring a deeper strategic partnership aimed at promoting sustainable energy solutions.

“We are delighted to partner with GAIL on one of the world’s largest carbon-free, renewable energy supply contracts," said Kolli, adding that the partnership reinforces AM Green’s leadership in clean energy solutions and supports India’s goal of becoming a global exporter of sustainable green molecules.

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“By facilitating the supply of carbon dioxide for e-methanol production, we are taking a proactive approach to reduce carbon emissions and support alternative fuel development. Development of renewable energy projects will support reducing carbon footprint of the country and advancing India's transition to a greener energy landscape,” Rajeev Singhal, director (Business Development), Gail, was quoted as saying in the statement.