The firm is working with an adviser on the fundraising to bolster its ability to produce green hydrogen and other chemical compounds, the people said, asking not to be identified as the information is private.
AM Green aims to build a million tonnes a year of green methanol capacity, one of the people said.
Singapore sovereign wealth fund GIC and the renewable energy arm of Malaysian state oil giant Petronas Nasional announced an investment in AM Green Ammonia Holdings, according to a statement Sunday confirming a Bloomberg News report.
The project is set to produce 5 million tonnes of green ammonia a year, the statement showed.
Discussions are ongoing and details of the fundraising could change, the people said. A representative for AM Green declined to comment.
Green ammonia and hydrogen are expected to play a bigger role in electricity generation, shipping and hard-to-abate industries like oil refining, chemicals, fertiliser and steel in the coming years.
In India, which is aiming for net zero by 2070, AM Green joins heavyweights Adani Group and Reliance Industries in making ambitious investments in such technologies.
Green methanol, produced from renewable sources, is seen as a climate-friendly energy source that can be used to decarbonise transportation. It can also be used as a low-carbon feedstock for making a range of industrial chemicals.
AM Green, founded by Mr Anil Chalamalasetty and Mr Mahesh Kolli, is developing production capability for molecules including green hydrogen, green ammonia, biofuels, green caustic soda and e-methanol, the announcement showed.
Greenko, the Hyderabad-based solar, wind and hydro power company also started by Mr Chalamalasetty and Mr Kolli, has received backing from GIC as well as sovereign wealth fund Abu Dhabi Investment Authority, its website shows.
Japanese financial firm Orix Corp completed its acquisition of a US$961 million stake in Greenko in 2021. BLOOMBERG
