SJVN's subsidiary SJVN Green Energy signs MoU with AM Green Ammonia

28 Jun 2024 , 10:11 AM

SJVN’s stock increased after its subsidiary, SJVN Green Energy (SGEL), signed an MoU with AM Green Ammonia. The purpose of the MoU is to supply renewable energy for green ammonia plants in Andhra Pradesh.

At the time of writing on June 28, 2024 at 10:04 am, shares of SJVN is trading at ₹131.80 which is a 0.42% dip than the previous close. The stock has gained a total of 225% in the last one year, and 41% since the beginning of the year.

The MoU outlines cooperation for the long-term supply of renewable energy to these plants on mutually agreed terms and conditions.

AM Ammonia (India), part of the Greenko Group, is developing one of the world’s largest Green Ammonia Platforms at Kakinada, Andhra Pradesh. The platform will start with a capacity of one million tons per annum (MTPA) and expand to five MTPA by 2030, equivalent to one MTPA of hydrogen.

SGEL will explore establishing 4,500 MW of renewable energy projects in India, including 2,500 to 3,000 MW of solar projects and 1,500 to 2,000 MW of wind projects over three phases, ensuring an annual supply of about 11,500 million units.

SGEL and AM Ammonia plan to develop a commercial framework to offer competitive tariffs and adequate returns, including dollar-denominated tariffs, and will enter into a definitive agreement soon.

SGEL currently manages a renewable energy portfolio of about 7.2 GW at various stages of development, including operation, construction, and pre-construction. This MoU marks SGEL’s first venture into the commercial and industrial segment.

SJVN primarily generates electricity and also provides consultancy services. In Q4 FY24, the company reported a 56.04% decrease in consolidated net profit to ₹61.08 crore and an 11.12% decline in revenue from operations to ₹482.91 crore compared to Q4 FY23.