Swiss Casale joins AM Green’s ammonia project in India

Swiss Casale joins AM Green’s ammonia project in India

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Business Developments & Projects

January 23, 2025, by Aida Čučuk

Indian green hydrogen and ammonia producer AM Green has chosen Swiss industrial equipment supplier Casale as its technology partner for the conversion of two grey ammonia plants into a green ammonia complex in Kakinada, India.

Ammonia production facility and port infrastructure in Kakinada on East coast of India. Courtesy of Yara International

For the project, Casale is expected to leverage its experience in revamping facilities, complemented by its FLEXIGREEN suite of technologies, designed to promote sustainability and support the global energy transition.

The supplier will provide the following scope of services: green ammonia license, basic engineering package, review of detail engineering and supply of proprietary equipment.

As informed, AM Green’s project is strategically located at the Kakinada seaport on the east coast of India, in the state of Andhra Pradesh, and entails the revamping of two existing ammonia facilities to enable the production of 1,500 metric tons per day (MTD) of carbon-free ammonia.

The new plant is set to have two 640 MW pressured alkaline electrolyzers for green hydrogen production, air separation units for nitrogen, two trains of ammonia synthesis, ammonia storage, ammonia loading facility at the port and offsite utilities. According to AM Green, most of the produced ammonia will be exported to the European market.

The final investment decision (FID) was reached in August 2024, and in October, the producer awarded an engineering, procurement services, construction management and commissioning services (EPsCM) contract to Rely, a company dedicated to integrated green hydrogen and power-to-x (PtX) solutions.

Business Developments & Projects

Commenting on the partnership with Casale, Gautam Reddy K, CEO of AM Green Ammonia, said that the collaboration “represents a pivotal moment not only for AM Green but also for India’s progress towards reducing energy dependence and creating a decarbonized economy.”

Federico Zardi, CEO of Casale, expressed pride in being able “to leverage our expertise in executing revamping projects alongside our cutting-edge FLEXIGREEN® technology.”

AM Green Ammonia Project, Kakinada, India

AM Green Ammonia, a subsidiary of the AM Green Group, is building a green ammonia project in Kakinada, Andhra Pradesh, India.

Project Type

Green Ammonia Production Plant

Location

Kakinada, Andhra Pradesh, India

Final Investment Decision

August 2024

Expected Start of Production

Second Half of 2026

Production Capacity

Initially 1MTPA

Developer

AM Green Ammonia

Yara will receive green ammonia from the project under the term sheet agreement with AM Green. In picture, ammonia tanker Yara Nauma. (Credit: Yara)

The AM Green Ammonia Kakinada Project will be located in Andhra Pradesh. (Credit: AM Green/ PRNewswire)

CertifHy, in partnership with Bureau Veritas, granted EU RFNBO pre-certification to the project. (Credit: CertifHy)

Yara will receive green ammonia from the project under the term sheet agreement with AM Green. In picture, ammonia tanker Yara Nauma. (Credit: Yara)

The AM Green Ammonia Kakinada Project will be located in Andhra Pradesh. (Credit: AM Green/ PRNewswire)

AM Green Ammonia, a subsidiary of the AM Green Group, is building a green ammonia project in Kakinada, Andhra Pradesh, India.

AM Green (formerly Greenko ZeroC) is incorporated by India-based energy transition solutions provider Greenko Group.

The Final Investment Decision (FID) on the project was reached in August 2024. The green ammonia plant is expected to commence production in the second half of 2026.

Once operational, the project will produce one million tonnes per annum (mtpa) of green ammonia initially.

AM Green Ammonia aims to achieve a production capacity of 5mtpa of green ammonia by 2030. This is equivalent to the production of about 1mtpa of green hydrogen, which represents a fifth of India’s target for green hydrogen production under the country’s National Green Hydrogen Mission.

The Kakinada Project will be one of the largest green ammonia projects in the world. It will export a majority of the production to Europe.

AM Green Ammonia Kakinada Location

The Green Ammonia Project will be located at an existing urea plant in Kakinada, a seaport situated on the coast of Andhra Pradesh.

Originally, the urea plant was owned by the public listed company Nagarjuna Fertilizers and Chemicals Limited (NFCL).

AM Green Ammonia acquired the plant in early 2024. The deal received Competition Commission of India (CCI) approval in April 2024.

Green Ammonia Project Development

The project development plan involves converting the urea plant into a green ammonia production facility.

Kakinada green ammonia plant will comprise a green hydrogen generation unit equipped with electrolysers, air separation unit, green ammonia production unit and associated facilities.

The project will be developed in phases. It will use renewable energy received from the grid for production.

The plant will be equipped with advanced pressurised alkaline electrolysers. The electrolysers will produce hydrogen by splitting water into hydrogen and oxygen using renewable power.

The hydrogen will be combined with nitrogen, compressed, cooled, and separated from air, at high temperature and pressure to produce green ammonia.

Kakinada project has secured pre-certification from CertifHy for complying with the EU RFNBO requirements for green ammonia.

CertifHy is a renewable hydrogen and e-fuel certification provider. It partnered with certification company Bureau Veritas and renewable hydrogen consultancy Hinicio to carry out the pre-certification.

Power Supply

The hydrogen/ ammonia project’s electrolyser will be powered by Round the Clock (RTC) renewable electricity.

AM Green Ammonia has entered into agreements to secure the required 1,300MW of carbon-free power, which will be enabled through 4,500MW solar and wind hybrid capacity. The capacity will be integrated with pumped hydro storage to ensure a steady supply of power to the plant.

In June 2024, AM Green signed a memorandum of understanding (MoU) with SJVN Green Energy (SGEL), a wholly owned subsidiary of SJVN, for around 4,500MW of power.

NTPC Renewable Energy, a wholly owned subsidiary of NTPC Green Energy, signed a term sheet with Greenko Group Company’s Greenko ZeroC in March 2023 for the supply of 1,300 MW RTC power for Kakinada plant.

AM Green Ammonia has placed a request to provide the connectivity through 400 kV D/c (twin Moose) from 765/400 kV Vemagiri (GIS). The substation is operating with two 1,500MVA 765/400kV Inter-Connecting Transformers (ICTs).

Contractors Involved

In October 2022, Greenko, via its subsidiary AM Green, and Keppel Infrastructure, through its subsidiary Keppel New Energy Ventures, signed an MoU to explore the feasibility of developing the ammonia project.

In October 2023, AM Green partnered with Malaysian company Petronas’ clean energy division Gentari to develop the green ammonia platform in India.

The electrolysers for the Kakinada plant will be delivered by John Cockerill, a Belgium-based manufacturer of high-capacity alkaline electrolysers.

AM Green also agreed to form a joint venture with John Cockerill to make electrolysers in India. The partnership aims to supply 6.5GW of electrolysers to AM Green Ammonia by 2030.

Offtake Agreements

In May 2024, Greenko ZeroC, an ammonia producer owned by AM Green, and Yara Clean Ammonia, a Norway-based trader and distributor of ammonia, signed a term sheet and subsequent offtake agreement for the supply of ammonia from the Kakinada facility.

The agreements entail long-term supply of up to 50% of green ammonia from the first phase of the project.

Energy company Uniper signed an MoU and Heads of Terms with AM Green in February 2023 to enter into exclusive negotiations for the offtake of green ammonia from the first phase of the project.

Uniper may sign a supply and purchase agreement for 250,000 tonnes per annum of green ammonia on the Head of Terms.

In September 2024, RWE Supply & Trading signed a MoU for long-term supply of green ammonia from AM Green Ammonia’s plants based in India.

It outlines the supply of up to 250,000 tonnes of green ammonia annually. Initially, around 50,000 tonnes of green ammonia will be produced at the Kakinada site, while the remaining volume of up to 200,000 tonnes will be sourced from the Tuticorin facility.