There was a recent Ventura report on Aegis, which talked about a 1000 cr. expansion in storage of green ammonia (80k MTPA capacity) in Odisha. I dont remember management talking about this during concalls, but its good to see them finally pushing the pedal on capex. I am sharing the relevant excerpts from the report.
09.01.2024 Ventura report
- The next stage of expansion includes developing a facility in Odisha for storing 80,000 MTPA of green ammonia with an investment of 1,000 cr.
- Green ammonia, a derivative of green hydrogen, will also be produced under NGHM and it will be especially relevant for the fertilizer industry. Currently, Indian fertilizer companies primarily derive ammonia from imported LNG, leading to higher production costs
- Government’s strategy to shift from imported LNG to a cleaner and domestically produced feedstocks is expected to increase the demand for green ammonia and its related transportation/storage infrastructure. AVTL’s upcoming green ammonia storage facility is poised to be a key strategic asset, potentially benefiting from the NGHM.
Disclosure: Invested (position size here, bought shares in last-30 days)