AM Green Ammonia, a venture by Greenko Group, has reached the final investment decision (FID) for its inaugural 1 million tonne (MT) green ammonia project in Kakinada, Andhra Pradesh. This milestone paves the way for the company to commence production of 5 MT of green ammonia annually by 2030.
The project will encompass a green hydrogen generation unit and its conversion to green ammonia, along with all necessary plant infrastructure. Greenko Group, along with its shareholders Gentari and GIC, is backing the venture.
The project is located at an existing urea plant in Kakinada, acquired by the company earlier this year as part of its capital expenditure. The facility will be converted into a green ammonia production unit, with operations set to begin in the second half of 2026. The majority of the production is intended for export to European markets, the company 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,” said Anil Chalamalasetty, founder of Greenko Group and AM Green. “This is a significant milestone for AM Green, reinforcing our position as a leading energy transition solutions platform. We are helping decarbonize industries such as refineries, shipping, fertilisers, power generation, chemicals, and others through low-cost green molecules and their derivatives.”
AM Green has already executed offtake term sheets for the project with major players including Uniper, Yara, and Keppel, aimed at a range of green hydrogen applications.
The company has secured the necessary 1,300 MW round-the-clock carbon-free power, enabled by a 4,500 MW solar and wind hybrid capacity combined with 950 MW of pumped storage power (PSP) capacity, it stated.
“A 25-year fixed-price power purchase agreement (PPA) with NTPC, covering half of the above capacity, is already in place. The remaining capacity is expected to be supplied by Gentari,” the company added.
In addition to the Kakinada project, the company is also focused on the production of green ammonia across multiple locations in India to achieve its planned 5 MTPA of green ammonia capacity by 2030.
“This will be equivalent to about 1 MTPA of green hydrogen, representing a fifth of India’s target for green hydrogen production under the country’s National Green Hydrogen Mission and 10% of Europe’s target for green hydrogen imports by 2030,” the company said.
From: financialexpress
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