New Delhi: AM Green Technology and Solutions BV has signed binding agreements to acquire Chempolis Oy and Fortum 3 BV, marking the entry of its parent company AM Green into biofuels.

AM Green Technology & Solutions has also announced plans to invest $1 billion over the next three years to produce sustainable aviation fuel (SAF). On 22 July, Mint reported that AM Green was planning a $1-billion biofuels investment and looking to acquire Finland-headquartered Chempolis Oy.

The development is significant as India is aggressively pushing for the adoption of biofuels – ethanol, blended petrol and SAF. The Global Biofuels Alliance (GBA) was formed last year, during India’s presidency of the G20, to promote biofuels worldwide.

Also read: Global Biofuels Alliance to prepare charter, finalize governance structure

Chempolis Oy has been a major player in lignocellulosic feedstock processing, with research, technology capabilities and product development expertise spanning more than 15 years. Lignocellulosic feedstock is a plant-based biomass that is made up of cellulose, hemicellulose, and lignin. It is a renewable resource that can be used in a variety of applications.

“Chempolis’s technology will enable the processing of multiple 2G waste feedstocks and the production of high-value green chemicals and products such as ethanol, furfural, and pure lignin, accelerating AM Green’s vision to become the world’s leading industrial decarbonizations platform,” the company said in a statement.

Anil Chalamalasetty, group chairman of AM Green, said, “We are excited to partner with Chempolis to advance the processing of 2G lignocellulosic feedstocks. This highlights our commitment to developing innovative, technology-enabled solutions to establish large-scale bio refineries that utilise multiple feedstocks and produce high-value green products enabling global decarbonisation in aviation, fuels, chemicals, and other industrial sectors.”

AM Green foresees significant potential in the downstream applications of these key products, which could pave the way for its entry into green-chemical value chains across several sectors, including consumer and industrial use cases, the statement said.

Global bio-refinery ecosystem 

The company said it would work with partners worldwide to establish a global bio-refinery ecosystem by licensing Chempolis’s technology. It also said it would further advance the technological capabilities of Chempolis to process a wider range of feedstocks, transforming them into highly valuable green products tailored for diverse consumer and industrial applications.

The company, backed by Greenko Group founders Mahesh Kolli and Anil Kumar Chalamalasetty, aims for a presence across the energy transition ecosystem, including green hydrogen, green ammonia, biofuels, e-methanol, SAF, and downstream high-value chemicals.

Last week AM Green Ammonia BV, another AM Green subsidiary, tied up with RWE Supply & Trading of Germany to supply green ammonia. It expects to start deliveries from its India plants by 2027.