In a significant milestone for the global green energy sector, AM Green Ammonia B.V. has secured the Final Investment Decision (FID) for what will be one of the world’s largest green ammonia projects. Located in Kakinada, Andhra Pradesh, India, the project is set to produce one million tons of green ammonia annually by 2026, with ambitions to ramp up to five million tons per annum (MTPA) by 2030. This production volume will equate to around one MTPA of green hydrogen, a key component in the global push towards net zero emissions.
The FID represents a crucial step for AM Green Ammonia B.V., which has the backing of major shareholders, including Gentari and GIC. The project involves the conversion of an existing urea plant in Kakinada, acquired by the company earlier this year, into a state-of-the-art green ammonia facility. Production is expected to commence in the latter half of 2026, marking the beginning of India’s significant contribution to the global green ammonia market.
A Leap Towards Sustainable Energy
Green ammonia, produced using renewable energy, is seen as a vital part of the future energy mix, particularly as a carrier of hydrogen. This project is aligned with both India’s and Europe’s green hydrogen goals and is expected to make a substantial contribution to global decarbonisation efforts.
To ensure the lowest-cost production of green ammonia, AM Green Ammonia B.V. has partnered with John Cockerill, a leader in the production of pressurised alkaline electrolysers. These electrolysers, with a capacity of 1.3 gigawatts (GW), will play a pivotal role in the green hydrogen generation process at the Kakinada facility.
The company has secured 1,300 megawatts (MW) of round-the-clock carbon-free power, sourced from a 4,500 MW solar and wind hybrid capacity, complemented by 950 MW of pumped storage capacity. Half of this power will be supplied under a 25-year fixed-price power purchase agreement (PPA) with NTPC, while the remaining capacity will come from Gentari. This reliable energy supply is crucial in overcoming the intermittency issues often associated with renewable power, allowing for up to 90% utilisation of the deployed electrolysers.
Meeting Global Standards and Market Demand
The Kakinada project has already been pre-certified by CertifHy, confirming its compliance with the European Union’s Renewable Fuels of Non-Biological Origin (RFNBO) requirements for green ammonia. This includes strict adherence to principles of additionality and hourly matching of renewable energy sources, ensuring the facility’s production is truly green.
A significant portion of the green ammonia produced at Kakinada will be exported to Europe, where demand for green hydrogen and its derivatives is rapidly increasing. AM Green Ammonia B.V. has already secured offtake agreements with major European energy players, including Uniper, Yara, and Keppel, ensuring a strong market for its production.
A Broader Vision for Green Ammonia in India
The Kakinada project is just the beginning for AM Green Ammonia B.V. The company is also planning to develop additional green ammonia production facilities across India, with the goal of reaching a total capacity of five MTPA by 2030. This ambitious expansion aligns with India’s National Green Hydrogen Mission, which aims to make the country a global leader in green hydrogen production.
Achieving this target would also position India as a significant exporter of green hydrogen to Europe, contributing 10% of the continent’s green hydrogen import needs by 2030. The scale of these projects reflects India’s commitment to playing a leading role in the global energy transition, offering innovative solutions to the world’s decarbonisation challenges.
Conclusion
AM Green Ammonia B.V.’s green ammonia project in Kakinada represents a major leap forward in the production of sustainable energy. With the backing of significant international partners and a clear path to scaling up operations, the project is poised to make a lasting impact on the global energy landscape. As the world continues to shift towards greener energy sources, projects like this will be essential in achieving long-term climate goals.