Malaysia’s state-owned oil and gas company Petronas is poised to invest US$1.6 billion to take a 30% stake in AM Green Ammonia Holdings, an Indian company founded by leading figures from Indian renewables group Greenko.

Another investor in the capital raise for AM Green Ammonia Holdings is likely to include Singaporean sovereign wealth fund GIC, which is Greenko’s biggest shareholder. The new venture is aiming to produce 5 million tonnes of green ammonia by 2030, operating over five states, and beginning exports by 2025. Greenko managing director Mahesh Kolli told the Financial Times that AM Green plans to build the world’s “lowest cost hydrogen delivery platform” by using renewables and energy storage technologies within India, with Greenko already manufacturing electrolysers in cooperation with Belgian engineering company John Cockerill.

The deal is one of several involving hydrogen and green ammonia for Indian companies this year, and it will help Petronas meet its goal of having 30% of its revenue coming from non-traditional business by 2030. It is also reflective of the growing rise of India in the global clean energy transition.