India’s bold leap toward green energy! GAIL signs deal for massive renewable project

India’s energy sector is taking a monumental step towards sustainability as GAIL (India) Limited and AM Green B.V. (AMG) have inked an agreement aimed at boosting the country’s green transition. The two powerhouses have signed a Memorandum of Understanding (MoU) to jointly develop renewable energy projects up to 2.5 GW and establish green chemical facilities, signaling a bold move towards carbon reduction and eco-friendly energy solutions.

The partnership will focus on an innovative project, leveraging carbon dioxide (CO2) from GAIL’s gas processing plants to produce eMethanol, a greener fuel expected to reduce emissions while promoting a circular economy. The agreement outlines the long-term supply of approximately 350 KTA of CO2, a step towards addressing carbon-intensive industries like steel, cement, and shipping.

This MoU, signed on October 4, 2024, by senior executives of both companies in New Delhi, is projected to fuel the advancement of renewable energy infrastructure across India. GAIL and AM Green aim to set up hybrid solar and wind energy projects, which will be integrated with Greenko‘s forthcoming Pump Storage Projects. This renewable energy initiative is expected to provide round-the-clock power to their eMethanol production facilities, which could position India as a leader in green methanol exports.

Game-changing collaboration

GAIL’s Business Development Director Rajeev Singhal described the collaboration as a “proactive approach” to reducing carbon emissions, positioning India at the forefront of the green energy revolution. Singhal highlighted the technological innovation this partnership will spur while contributing to the nation’s economic growth and commitment to renewable energy. By turning CO2 emissions into productive use, this initiative aligns with India’s growing ambition to decarbonize industrial sectors and promote environmental sustainability.

AM Green’s Group President, Mahesh Kolli, echoed the sentiment, emphasizing that this collaboration showcases their “emerging leadership in the global clean energy transition.” He believes that by transforming India into an exporter of sustainable, low-cost green molecules, the country is poised to accelerate industrial decarbonization worldwide.

The partnership, viewed as one of the world’s largest carbon-free renewable energy deals, underscores a significant leap forward in renewable fuels and clean energy solutions. Both companies foresee economic benefits tied to these projects, which are aligned with EU standards for Renewable Fuels of Non-Biological Origin (RFNBO), potentially increasing India’s footprint in the global green energy market.

Expert opinion on India’s green transition

The GAIL-AM Green MoU could significantly accelerate India’s energy transition. He pointed out that collaborations like these are critical for meeting India’s ambitious renewable energy targets and positioning the country as a major player in global decarbonization efforts. The integration of green technologies into heavy industries will likely boost competitiveness while meeting international regulatory requirements for green exports.

The strategic partnership between GAIL and AM Green demonstrates India’s dedication to fostering environmental sustainability and advancing its renewable energy capabilities. With this MoU, the future of energy in India looks greener, more sustainable, and firmly positioned at the cutting edge of technological innovation.