AM Green Ammonia B.V. has announced the Final Investment Decision (FID) for its inaugural million-ton green ammonia project based in Kakinada, Andhra Pradesh, India. This milestone marks the beginning of the company’s ambitious goal to achieve a production capacity of 5 million tons per annum (MTPA) of green ammonia by 2030, equating to approximately 1 MTPA of green hydrogen. The company’s shareholders include its founders, Gentari, and GIC.
Project Overview
The green ammonia project will be developed on the east coast of India at a site currently housing a urea plant, which AM Green Ammonia acquired earlier this year. The plant will undergo a conversion to focus on green ammonia production, with operations expected to commence in the latter half of 2026. The total investment will cover the establishment of a green hydrogen generation unit, its conversion to green ammonia, and the associated balance of plant and infrastructure.
Infrastructure and Certification
The Kakinada facility will be equipped with state-of-the-art infrastructure, including a green hydrogen generation unit and a green ammonia production unit. It has already received pre-certification from CertifHy, confirming compliance with EU Renewable Fuels of Non-Biological Origin (RFNBO) standards, which includes requirements for additionality and hourly matching of renewables. The majority of the facility’s output is planned for export to European markets.
Offtake Agreements and Power Supply
AM Green Ammonia has secured offtake term sheets with major industry players such as Uniper, Yara, and Keppel, ensuring a diverse range of green hydrogen applications. To power the plant, the company has arranged for 1,300 MW of round-the-clock carbon-free energy, sourced from a combination of 4,500 MW of solar and wind hybrid capacity and 950 MW of pumped storage capacity. A 25-year fixed-price power purchase agreement (PPA) with NTPC covers half of this energy supply, with the remainder expected to be provided by Gentari.
Technological and Strategic Advantages
The project will leverage cutting-edge technology and partnerships to address renewable intermittency issues. Notably, AM Green Ammonia has secured access to gigawatt-scale pumped storage projects and a manufacturing partnership with John Cockerill for 2 GW scale pressurized alkaline electrolyzers. These advancements are set to enhance the project’s efficiency, allowing for up to 90% utilization of the electrolyzers, and positioning it as one of the most innovative and cost-effective green ammonia projects globally.
This initiative represents a significant step forward in the global green ammonia market, underscoring AM Green Ammonia B.V.’s commitment to advancing sustainable energy solutions.
