KEPPEL Infrastructure will be working with renewable energy GreenKo to explore green ammonia and renewable energy opportunities.
The urban solutions company announced via a bourse filing on Tuesday (Oct 25) that it will work with the Indian company to explore whether it's feasible to jointly develop a production facility that can produce at least 250,000 tonnes of green ammonia per year.
Both companies will also identify and evaluate a portfolio of solar and wind energy projects, up to an installed capacity of about 1.3 gigawatt, that can power the production facility. It will also be complemented by pumped hydro-storage.
Green ammonia is made with green hydrogen that comes from water electrolysis powered by renewable power.
The cooperation between these companies, inked via a memorandum of understanding through its respective subsidiaries, comes amid the need to meet the growing demand for low carbon energy in India, Singapore and globally.
"As more countries journey towards net zero emissions to fight climate change, there is a growing interest internationally to use green ammonia as a direct feedstock for carbon-free energy generation, because when it is used as a fuel, green ammonia does not generate any carbon dioxide," said Keppel Infrastructure in the filing.
Green ammonia can also be used as a hydrogen carrier to provide green hydrogen solutions for hard-to-abate sectors like chemical and heavy industries. In addition, green ammonia may be used to replace bunker fuels to decarbonise the global maritime industry, it added.
The collaboration between Keppel Infrastructure and Greenko is set to support India's goal to manufacture five million tonnes of green hydrogen per annum by 2030 and become a production and export hub for the fuel.
Keppel Corporation, which is the parent company of Keppel Infrastructure, said it does not expect the collaboration to have any material impact on their earnings per share and net tangible asset per share for the current financial year.