AM Green Ammonia (India) Pvt Ltd is developing a large-scale green ammonia project in Kakinada,

 AM Green Ammonia (India) Pvt Ltd is developing a large-scale green ammonia project in Kakinada, Andhra Pradesh, aiming for 1 million tons per annum of production, with the facility expected to start production in the second half of 2026. 

AM Green Ammonia (India) Pvt Ltd's Kakinada project, estimated to cost ₹13,000-15,000 crore ($1.5 billion), is a 1 million tonne per year green ammonia plant, with funding equally split between equity and debt, and the equity invested by Gentari, GIC, and ADIA. 

Here's a more detailed breakdown:

Project Location:

The project is located in Kakinada, a seaport on the coast of Andhra Pradesh, at an existing urea plant formerly owned by Nagarjuna Fertilizers and Chemicals Limited (NFCL). 

Ownership and Development:

AM Green Ammonia, a subsidiary of the Greenko Group, acquired the plant in early 2024. 

Final Investment Decision (FID):

AM Green reached its final investment decision for the project in August 2024. 

Production Capacity:

The project aims to produce 1 million tons of green ammonia per year. 

Green Ammonia Production:

The plant will produce green ammonia by converting existing grey ammonia facility to green ammonia facility, utilizing green hydrogen produced through renewable energy sources and air separation units. 

Power Source:

The facility will utilize 1,300 MW of round-the-clock carbon-free power, sourced through 4,500 MW of solar and wind hybrid capacity, and 950 MW of pumped storage project (PSP) capacity. 

Off-take Agreements:

AM Green has secured offtake agreements with major players like Yara (50% of phase one volume), Keppel and Uniper, with the majority of phase one production volume headed to European markets. 

Future Expansion:

AM Green is focused on establishing green ammonia production facilities across multiple locations in India to reach its goal of 5 Mtpa of green ammonia capacity by 2030. 

Significance:

This project is a significant step towards India's net-zero goals and aims to contribute to the decarbonization of various industries including agriculture, energy, and transportation. 

Partnerships and Suppliers:

AM Green has partnered with Reliance Industries for the project, John Cockerill is providing the electrolyzers, and Rely is providing the engineering, procurement, construction management, and commissioning services.