KPI Green Energy Limited has announced a groundbreaking partnership with AhES Co. Ltd. of South Korea and GH2 Solar Ltd. of India to establish a green ammonia production facility in India. The plant is set to have a capacity of 100,000 tonnes per annum (TPA), marking a significant step towards sustainable energy solutions in the country.

Strategic Collaboration

The collaboration, formalized through a Memorandum of Understanding (MoU), involves KPI Green Hydrogen & Ammonia Private Limited (KPI GH), a subsidiary of KP Group, as the primary operator of the facility. AhES Co. Ltd. and GH2 Solar Ltd. will provide technical and strategic support, including arranging offtake agreements for the green ammonia produced.

Key Highlights of the Partnership

• Production Capacity: The facility will produce 100,000 TPA of green ammonia.
• Market Focus: The green ammonia will target markets in South Korea, Japan, and other international destinations.
• Offtake Arrangements: AhES will serve as one of the primary offtakers for the produced green ammonia.
• Renewable Energy Integration: The project will leverage renewable energy and infrastructure solutions supplied by KP Group entities.
• Strategic Duration: The partnership is set for a 15-year collaboration, underlining a long-term commitment to sustainable energy.

Technological Expertise

AhES Co. Ltd., known for its expertise in hydrogen electrolyzer manufacturing and Power-to-Gas solutions, brings cutting-edge technology to the project. GH2 Solar Ltd., specializing in solar infrastructure and green hydrogen production, contributes local expertise and project execution capabilities.

Alignment with National Goals

Dr. Faruk Patel, Chairman & Managing Director of KP Group, stated, "This partnership exemplifies KP Group's vision to lead clean energy innovation in India and abroad." The initiative aligns with India's National Green Hydrogen Mission objectives and supports the country's goals for carbon reduction and renewable energy growth.

KP Group's Green Energy Portfolio

KP Group brings substantial experience to the project, with over 30 years in the renewable energy sector. The group currently boasts an installed power capacity of 1.9+ GW and has 3.9+ GW under development, showcasing its significant presence in the green energy transition.

This strategic partnership not only positions KPI Green Energy at the forefront of green ammonia production but also reinforces India's commitment to sustainable and clean energy solutions on a global scale.

KPI Green Energy Limited , a prominent player in the renewable energy sector, has made a significant move in the green finance arena. The company's Debenture Committee has approved the issuance of secured, listed, rated, senior, redeemable, transferable, non-convertible certified "green" bonds worth 670 crore rupees through private placement.

Key Details of the Green Bond Issue

Security and Asset Backing

The green bonds will be backed by a comprehensive security package, including:

1. First ranking exclusive fixed charge over specified fixed assets comprising 110.7 MW of revenue-generating independent power producer projects of KPI Green Energy.
2. Exclusive floating charge over receivables and cash inflows from the aforementioned assets.
3. First ranking exclusive charge over debt service reserve and security deposits.
4. Non-disposal undertakings and mortgages on project lands.
5. Similar security arrangements for projects under KPIG Energia Private Limited (24.7 MW) and KPARK Sunbeat Private Limited (10 MW).

Significance of the Move

This green bond issuance aligns with the growing trend of sustainable finance in India's renewable energy sector. By opting for green bonds, KPI Green Energy is not only raising capital but also reinforcing its commitment to environmentally responsible projects.

The substantial size of the issue, at 670 crore rupees, indicates the company's ambitious plans for expansion and development in the renewable energy space. The funds raised are likely to be utilized for financing or refinancing green projects, potentially accelerating the company's growth in the clean energy sector.

Market Impact

The successful placement of these green bonds could strengthen KPI Green Energy's position in the renewable energy market. It also reflects the increasing investor appetite for sustainable financial instruments in India.

Investor Confidence

The attractive coupon rate of 8.50% per annum, coupled with the secured nature of the bonds and the company's established presence in the renewable energy sector, is likely to appeal to both institutional and retail investors looking for green investment opportunities.

As the renewable energy sector continues to gain prominence in India's energy landscape, KPI Green Energy's move to raise funds through green bonds positions it well to capitalize on the growing opportunities in this space.

The company's ability to secure this significant funding through green bonds underscores the financial market's confidence in its business model and future prospects in the renewable energy sector.

Note: The Debenture Committee meeting for this approval was held on September 2, 2025, commencing at 08:15 p.m. and concluding at 08:50 p.m.