Kakinada, Andhra Pradesh – AM Green Ammonia B.V., a venture by the promoters of Greenko Group, has achieved a critical milestone with the FID for its ambitious green ammonia project in Kakinada, Andhra Pradesh. The project, expected to be ranked among the world’s largest green ammonia platforms, is also expected to kick off with one million tonnes annually and ramp up to five million tonnes by 2030.
Project Overview
The Hyderabad-based Greenko Group-led platform, led by Anil Chalamalasetty and Mahesh Kolli, has proposed to AM Green to manufacture green ammonia-a chemical key to unlocking a carbon-free energy economy. Green ammonia is manufactured from green hydrogen made from renewable energy such as solar and wind. The project of Kakinada would include green hydrogen production and its conversion to green ammonia with all ancillary supporting infrastructure.
Although the company didn’t disclose the exact investment figures that were made in the project, it said FID will approve the start of work at the project location. Production at the Kakinada facility, which is located at an existing urea plant that AM Green acquired earlier this year, is expected to start during the second half of 2026. This project is another important milestone in India’s journey toward sustainable and renewable energy sources.
Strategic Partnerships and Infrastructure: AM Green has entered into various strategic partnerships for the development and operations of the Kakinada project. The company has signed offtake term sheets with some key international players, such as Uniper, Yara, and Keppel, for the use of green ammonia in various green hydrogen applications. These aforementioned strategic partnerships underlined the demand for green ammonia globally in industries who are committed to lessening their carbon footprint.
AM Green has secured 1300 MW of carbon-free electricity on a round-the-clock basis to power the green ammonia plant. This will be supplied by 4500 MW hybrid solar and wind capacity in addition to 950 MW of PSP capacity. A fixed price-25-year PPA has already been signed with NTPC to ensure security and stability of energy supply for this project. While this is due to Gentari, a major shareholder in AM Green, it will supply the remaining capacity.
The company has also inked a manufacturing agreement with John Cockerill-an advanced supplier of electrolyzers-for the supply of state-of-the-art pressurized alkaline electrolyzers. These electrolysers with 2 GW of production capacity will be deployed at the Kakinada facility to establish an efficient and sustainable hydrogen production system.
Expansion Plans
Further, the Kakinada project is but the beginning of a bigger plan by AM Green to establish a wide network of green ammonia production over several locations in India. Taken altogether, the total production by the company is targeted to reach five million tonnes of green ammonia per year by 2030, the equivalent of one million tonnes of green hydrogen annually. This growth will become imperative in helping India fulfill its pledge for a low-carbon economy by cutting carbon emissions.
Industry Impact
With this, refineries, shipping, fertilizers, the generation of power, and chemicals will be among the many industries that the implementation of the Kakinada project will have far-reaching implications for. Green ammonia is considered a very versatile alternative to conventional carbon-intensive fuels and chemicals. AM Green supplies the aforementioned chemical with low costs on a steady basis to these several industries that are in urgent need of going carbon-neutral to meet the stringent environmental standards of the European Union’s RFNBO norms.
Leadership Viewpoint Anil Chalamalasetty, founder of Greenko Group and AM Green, said that signing FID represented a landmark step for the Company in its mission of bringing carbon-free energy solutions to scale in global markets. He added that the Kakinada project represents an important milestone in the journey of AM Green on the path of establishing itself as a leading energy transition solution platform.
The FID status achieved for our Kakinada plant underlines our commitment to offering carbon-free energy solutions to global markets while meeting the highest set of standards like the EU RFNBO norms,” Chalamalasetty added. “This forms a major milestone for AM Green as it further strengthens our leading position in the energy transition solutions platform, enabling decarbonization of refineries, shipping, fertilizers, power generation, and chemicals among other industries through low-cost green molecules and their derivatives.”
Conclusion
The Kakinada green ammonia project by AM Green will mark one of the most important milestones in India’s renewable energy space. With its potential technologies and strategic partnership, at the front, the company is leading through active participation in India’s sustainable development goals, whereby it meets global challenges related to climate change. As the project evolves, it would be expected that new benchmarks for green ammonia production get laid as further innovations get brought on board in the clean energy sector.
Adapted from official press releases and corporate announcements, AM Green and Greenko Group.
Information sourced from official announcements and press releases from Greenko Group and AM Green Ammonia B.V.