ADB, Japan commit $100 million to AM Green’s renewable ammonia project
The financing includes a $100 million loan from the Private Infrastructure Fund 2, financed by the Japan International Cooperation Agency (JICA) and administered by ADB.
The Asian Development Bank (ADB) and the Government of Japan have committed $100 million to support AM Green Ammonia (India) in developing a large-scale green ammonia production facility in India, aimed at creating a new export industry and reducing emissions from fertiliser manufacturing.
The financing includes a $100 million loan from the Private Infrastructure Fund 2, financed by the Japan International Cooperation Agency (JICA) and administered by ADB.
The project will convert a former ammonia and urea plant from natural gas-based production to renewable energy-powered green ammonia manufacturing. With a planned annual capacity of around 1.1 million tonnes, the facility will support India’s ambitions to emerge as a major supplier of low-carbon ammonia for global markets.
Ammonia is a key ingredient in fertilisers and several industrial applications. Shifting its production from fossil fuels to renewable energy is expected to significantly reduce associated carbon emissions.
“This project changes how we make it. By using renewable energy instead of fossil fuels, India can produce it with far lower emissions and at a scale that can help reshape this industry,” ADB President Masato Kanda said.
The investment is the first under the Action for Creating Energy Security for Long-term Resilience (ACCEL), launched by ADB and Japan in May to strengthen energy security across Asia and the Pacific.
Japan Finance Minister Satsuki Katayama said strengthening the resilience of Asia’s energy supply chains was essential and welcomed the first joint project under ACCEL.
The initiative follows a two-pronged approach: providing short-term liquidity support to businesses, particularly small and medium-sized enterprises, while promoting diversified and sustainable energy systems over the medium to long term.
Through Japan-funded trust funds and collaboration with development finance institutions, including JICA and the Japan Bank for International Cooperation, ACCEL seeks to mobilise investment that strengthens energy resilience, supports industrial development and creates employment opportunities across the region.
