AM Green plans to manufacture so-called second-generation or 2G biofuels.
New Delhi: AM Green plans a $1 billion investment to establish two bio-ethanol plants, marking its entry into 2G biofuels. The company aims to acquire a 50% stake in Assam Bio Refinery Pvt. Ltd from Finnish companies Fortum Oyj and Chempolis Oy. AM Green also plans to acquire Chempolis Oy, a biotechnology firm. The Assam Bio Refinery will utilize 300,000 tons of bamboo annually to produce bioethanol and other chemicals. Exclusivity agreements have been signed for these transactions.
New Delhi: AM Green is planning to invest $1 billion for its 2G or second-generation biofuels foray by setting up two bio-ethanol plants, marking a new venture for the renewable energy company.
The company also plans to acquire 50% stake in Assam Bio Refinery Pvt. Ltd from Finnish companies Fortum Oyj and Chempolis Oy, two people aware of the development said. Oil India Ltd subsidiary Numaligarh Refinery Ltd (NRL) holds 50% in Assam Bio Refinery, while Fortum and Chempolis hold around 40% and 10% respectively. Alongside, AM Green also plans to acquire the Ouli, Finland-headquartered Chempolis Oy—a biotechnology firm—in which Fortum a Finnish state-run power utility, holds a stake.
AM Green, set up by Mahesh Kolli and Anil Kumar Chalamalasetty who founded the Greenko Group, has already signed the exclusivity agreements for the above-mentioned transactions, the people cited above said on the condition of anonymity.
“The exclusivity agreements for acquiring Fortum Oyj and Chempolis Oy’s stake in Assam Bio Refinery Pvt. Ltd, and also Chempolis Oy has been inked by AM Green. AM Green plans to expand in this space and in addition to Assam Bio Refinery, set up two more such plants in the country,” one of the two people cited above said.
Bio ethanol from bamboo AM Green plans to manufacture so-called second-generation or 2G biofuels, produced from non-food biomass such as plant materials and animal waste. First-generation biofuels are produced from sugar, starch, corn, wheat and broken rice, and 3G biofuel comes from micro-organisms such as bacteria and algae. The Assam JV will use 300,000 tons of bamboo every year 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 also the licensor of the 2G biofuel technology for the world’s first such plant producing cellulosic ethanol and bio-based chemicals from bamboo. Investors in Chempolis include Finnish investment and asset management group Taaleri Plc.
AM Green President Mahesh Kolli and Fortum India president Sanjay Aggarwal declined comment.
A Fortum Oyj spokesperson in an emailed response said, “As a stock listed company, we do not comment any market rumours or speculations.”
Broadening presence “In August 2023, Fortum announced that it would assess strategic options, including potential divestments, of its Circular Solutions businesses. The businesses comprise the operating, maintaining and developing of Fortum’s recycling and waste assets, the battery recycling business as well as turbine and generator services and biobased solutions. Chempolis is part of the biobased solutions,” the Fortum Oyj spokesperson said in the email. “As there are various businesses within, the scope there might be different outcomes for different businesses. There is no certainty whether the assessment will result in any transactions and Fortum will inform the market, if and when appropriate.”
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