AM Green to supply green ammonia to JERA for long term

Japan’s JERA Co. Inc. has signed a binding Heads of Agreement (HoA) with AM Green Ammonia (India) Pvt. Ltd. for the long-term supply of green ammonia produced in India, strengthening bilateral clean energy cooperation and supporting decarbonisation of the maritime sector.

Under the agreement, AM Green will supply approximately 70,000 tonnes of green ammonia annually to JERA for five years, with the possibility of extending the contract to accommodate additional supplies.

The green ammonia will be produced at AM Green’s facility in Kakinada, Andhra Pradesh, which is scheduled for commissioning in 2028-29. The project will use advanced alkaline electrolysis technology supported by round-the-clock renewable energy and pumped-hydro energy storage to enable reliable, low-carbon production.

JERA plans to utilise receiving, storage and distribution infrastructure being developed adjacent to its Hekinan Thermal Power Station in Aichi Prefecture, Japan, to handle the imported ammonia.

The fuel is primarily intended for a joint venture planned by Kawasaki Kisen Kaisha Ltd. and Nippon Yusen Kabushiki Kaisha. The venture aims to deploy an ammonia bunkering vessel to supply fuel to ammonia-powered car carriers, advancing the use of low-carbon fuels in maritime transportation.

Mahesh Kolli, Group President and Joint MD of AM Green, held, “This agreement reflects the growing demand for competitively priced green molecules from India and reinforces the strategic role of our Kakinada project in supporting Japan’s and maritime industry’s decarbonisation ambitions.”

JERA said the agreement would advance its integrated low-carbon ammonia value chain spanning production, transportation, storage and utilisation.

Moreover, the Asian Development Bank (ADB) and the Government of Japan recently signed financing agreements to support AM Green’s renewable-energy-based ammonia project. The financing includes a $100 million loan from Asia’s Private Infrastructure Fund 2, financed by the Japan International Cooperation Agency and administered by ADB.