Petronas arm Gentari India to raise $400 mn to supply clean power for green ammonia

Petronas’ clean energy arm Gentari provides energy solutions across three core areas – renewable Energy, hydrogen and green mobility

Gentari India, the clean energy arm of Malaysian energy major Petronas, looks to raise $300-400 million to set up solar and wind power assets that will supply round-the-clock power for green ammonia production, people aware of the matter told Moneycontrol on condition of anonymity.

Gentari has hired investment bank BNP Paribas for this fundraising effort, the people said.

The funds proposed to be raised will be used to set up around 2,400 megawatts (MW) of solar and wind assets in Karnataka and Andhra Pradesh.

In December 2024, Gentari signed a power purchase agreement with AM Green Ammonia India Private Limited, which is focused on green ammonia and green hydrogen businesses. AM Green has been set up by the founders of Greenko, one of India’s biggest renewable energy companies. Gentari, along with Singapore's sovereign wealth fund, is also an investor in AM Green, which looks to set up 5 million tonnes per annum (MTPA) of green ammonia capacity by 2030 – equivalent to about 1 MTPA of green hydrogen.

AM Green is now setting up a 1-MTPA green ammonia project in Kakinada, Andhra Pradesh.

Under the power supply contract, Gentari will be supplying 650 MW round-the-clock, carbon-free energy to power AM Green Ammonia. Under the arrangement, Gentari will set up approximately 2400 MW of renewable energy capacity and integrate it with 350 MW energy storage to supply firm and dispatchable green power.

“Unlike other renewable energy assets supplying power to the Indian grid or domestic industrial clients, this power supply contract is priced in dollars as it is linked to green ammonia supply contracts that are also priced in dollars. This makes the project more attractive for investors, given the current high interest rate regime due to which the dollar yields on energy assets in developed countries is more attractive than yields of Indian assets, making some investors hesitant about investing in Indian infra and energy assets,” said one of the people cited above.

Emails sent to Gentari did not elicit a response till publication.

Also Read: JSW Energy to acquire O2 Power for a total enterprise value of Rs 12,468 crore

Gentari India business

The Petronas’ clean energy arm provides solutions across three core areas – renewable energy, hydrogen, and green mobility.

Across the Asia-Pacific region, Gentari has 8 gigawatts (GW) of installed and under-construction renewable energy assets, over 1,000 EV charging points and more than 3,600 electric vehicles deployed under its vehicles-as-a-service business, which provides businesses with electric fleet options.

Petronas entered India's green power space in 2019 through the acquisition of Amplus Energy Solutions, a rooftop and distributed solar energy company. Gentari has a portfolio of 3 GW of renewable energy assets in India.

Apart from the AM Green power supply contract, in 2024 Gentari won a bid for a 400 MW of interstate transmission system connected wind-solar hybrid power projects. The company commissioned its first interstate transmission system connected solar power project through Amplus, with a capacity of 363 MW. These projects are connected to the national grid and the renewable energy generated can be transported across the country. In 2024, Gentari also commissioned a 200 MW project of co-located solar and wind assets.