GIC-backed AM Green to buy Finnish firm Chempolis, Fortum’s Bio2X
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GIC-backed AM Green to buy Finnish firm Chempolis, Fortum’s Bio2X

By Aman Malik

  • 23 Sep 2024
GIC-backed AM Green to buy Finnish firm Chempolis, Fortum’s Bio2X
The Chempolis biorefining park in Finland

Indian energy transition firm AM Green has inked separate deals to acquire Finnish biorefining company Chempolis Oy and its green energy compatriot Fortum’s biobased solutions business, or Bio2X.  

The Indian group, via AM Green Technology and Solutions BV, didn’t disclose the deal values but said it will invest about $1 billion (about Rs 8,350 crore) over the next three years to create production capacity of 0.5 million tonnes per annual of sustainable aviation fuel (SAF) for airlines. 

Chempolis is involved in the business of lignocellulosic feedstock processing and has research, technology capabilities and product development expertise spanning more than a decade and a half. Its local subsidiary, Chempolis India Pvt. Ltd, is also included in the transaction. In addition, the Finnish energy company Fortum’s will sell its Bio2X to Chempolis as part of the overall deal. 

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AM Green was set up by Anil Chalamalasetty and Mahesh Kolli, the founders of Hyderabad-based renewable energy provider Greenko Group. Its investors include Singapore sovereign wealth fund GIC, Abu Dhabi Investment Authority and Gentari, a unit of Malaysian oil giant Petronas. GIC and ADIA are also investors in Greenko. Gentari and GIC last year invested $1.75 billion in AM Green’s ammonia business. 

AM Green said it will leverage the acquisition and further investment to develop Chempolis’ technology into a global bio-refinery technology platform. It said it will set up “large-scale bio-refineries that utilize multiple feedstocks and produce high-value green products, enabling global decarbonization in aviation, fuels, chemicals and other industrial sectors. 

The company said it “foresees a significant potential in the downstream applications of these key products, which could pave the way for entry into multi green-chemical value chains across multiple sectors, including consumer and industrial use cases.”     

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AM Green said it will work with partners worldwide to establish a global bio-refinery ecosystem using a licensing model of Chempolis’ technology. “This collaborative approach will accelerate the global energy transition,” it said.  

“AM Green will further advance the platform's technological capabilities to process a wider range of feedstocks, transforming them into high valuable green products tailored for diverse consumer and industrial applications,” the company added. 

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