AM Green to invest in million-tonne green ammonia project in Kakinada

Hyderabad-based AM Green Ammonia has reached a Final Investment Decision (FID) on its first million-tonne green ammonia project in Kakinada, Andhra Pradesh. This FID marks the beginning of the company’s goal to achieve a production capacity of 5 million tonnes per annum (MTPA) of green ammonia by 2030, which is equivalent to approximately 1 MTPA of green hydrogen.

The total investment for this project includes the establishment of a green hydrogen generation unit and its conversion to green ammonia, along with all necessary plant infrastructure.

The project will be located at a urea plant in Kakinada that the company acquired earlier this year, which will be transformed into a green ammonia production facility, expected to commence operations in the latter half of 2026.

The Kakinada facility has been pre-certified by CertifHy for compliance with EU RFNBO requirements for green ammonia, including additionality and hourly matching of renewable energy sources. Most of the production from this facility is slated for export to European markets.

As per reports, the planned investment for this project is around Rs 12,500 crore. AM Green, founded by Hyderabad-based renewable energy firm Greenko and Singapore-based GIC Holdings Pte Ltd in partnership with Malaysia’s Petronas-Gentari, announced their collaboration last October to produce 5 MTPA of green ammonia using round-the-clock renewable energy by 2030.

The company has already secured offtake agreements with major industry players such as Uniper, Yara, and Keppel for various green hydrogen applications. Additionally, AM Green has secured the required 1300 MW of round-the-clock carbon-free power, enabled by 4500 MW of solar and wind hybrid capacity combined with 950 MW of pumped storage power (PSP) capacity.

Beyond the Kakinada project, AM Green is focused on expanding green ammonia production at multiple locations across India to achieve its 5 MTPA target by 2030. This is expected to significantly contribute to India’s net-zero goals and meet a portion of the green hydrogen demand in OECD markets, equating to about 1 MTPA of green hydrogen.

Greenko Group and AM Green founder, Anil Chalamalasetty, said, “The FID status achieved by our Kakinada plant underscores our commitment to providing carbon-free energy solutions globally while meeting the highest standards like EU RFNBO norms. This is a significant milestone for AM Green as it reinforces our position as a leading energy transition solutions platform helping to decarbonize industries like refineries, shipping, fertilizers, power generation, chemicals and others through low-cost green molecules and its derivatives.”