AM Green Plans USD 1 Bn Investment in Second-Generation Biofuels

New Delhi, Jul 22 (KNN) Renewable energy company AM Green is poised to make a significant entry into the second-generation (2G) biofuels market with a planned investment of USD 1 billion. The company intends to establish two bio-ethanol plants as part of this new venture.

Sources familiar with the matter report that AM Green is in negotiations to acquire a 50 per cent stake in Assam Bio Refinery Pvt. Ltd from Finnish firms Fortum Oyj and Chempolis Oy.

Currently, Numaligarh Refinery Ltd (NRL), a subsidiary of Oil India Ltd, holds the remaining 50 per cent stake in the bio-refinery.

Additionally, AM Green is reportedly seeking to acquire Chempolis Oy, a Finland-based biotechnology firm partially owned by Fortum, a Finnish state-run power utility.

AM Green, founded by Mahesh Kolli and Anil Kumar Chalamalasetty, who also established the Greenko Group, has reportedly signed exclusivity agreements for these transactions.

The company aims to expand its presence in the biofuel sector, with plans to construct two additional plants in India beyond the Assam facility.

The focus of AM Green's initiative is on second-generation biofuels, which are produced from non-food biomass such as plant materials and animal waste.

This approach differs from first-generation biofuels, which use food crops, and third-generation biofuels derived from micro-organisms.

The Assam joint venture is expected to utilise 300,000 tons of bamboo annually to produce 50,000 tons of bioethanol, along with other bio-based chemicals and green energy.

Chempolis, which AM Green seeks to acquire, is the technology licensor for this pioneering plant that produces cellulosic ethanol and bio-based chemicals from bamboo.

This potential investment by AM Green represents a significant development in India's renewable energy sector, particularly in the emerging field of advanced biofuels.

(KNN Bureau)