- FID for one of the world’s largest green ammonia production projects.
- The target is 1 million tonnes per year by 2026, with a long-term goal of 5 million tonnes by 2030.
- Partnerships with John Cockerill for advanced alkaline pressure electrolyzers (1.3 GW) ensuring the most cost-effective green molecules through 24/7 renewable energy (RE-RTC).
- The majority of production is exported to Europewhich meet the targets for green hydrogen in both India And Europeand contribute to supporting global decarbonisation.
HYDERABAD, India, 27 August 2024 /PRNewswire/ — AM Green Ammonia BV (“Company”) has received the Final Investment Decision (FID) for its first million tonne green ammonia project in Kakinada, Andhra Pradesh. India. The financing for this project will kickstart the company’s targeted production capacity of 5 million tonnes per annum (MTPA) of green ammonia by 2030 – equivalent to approximately 1 MTPA of green hydrogen. In addition to its founders, the company’s shareholders include Gentari and GIC.
Ammonia production plant and port infrastructure on the east coast of India
The total project expenditure for the plant includes a green hydrogen production plant and its subsequent conversion to green ammonia, as well as all associated plant and infrastructure equipment.
This project will be located at an existing urea plant in Kakinada, which the company acquired earlier this year and is part of the above capital expenditure. The plan is to convert this plant into a green ammonia production plant, which will start production in the second half of 2026.
The Kakinada plant has been pre-certified by CertifHy and meets the EU RFNBO requirements for green ammonia, including renewable additionality and hourly adjustment. The majority of the production from this plant is exported to European markets.
The company has already signed offtake agreements for this project with major players such as Uniper, Yara, Keppel and others for intended end use in a range of green hydrogen applications.
The company has secured the required 1,300 MW of CO2-free electricity production around the clock, made possible by a hybrid solar and wind capacity of 4,500 MW combined with 950 MW of PSP capacity.
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 has unique access to gigawatt-scale pumped storage projects and a manufacturing partnership for electrolyzers with John Cockerill on a 2 GW scale. These reliable, state-of-the-art alkaline pressure electrolyzers will be used in this project.
The use of these capabilities provides solutions to the problems of renewable energy intermittency and enables up to 90% utilization of the electrolyzers deployed, making this one of the most innovative and cost-effective green ammonia production projects in the world.
In addition to the Kakinada project, the company is also focusing on the production of green ammonia at several sites in India to achieve the planned capacity of 5 MTPA of green ammonia by 2030, which is expected to accelerate efforts to achieve net zero targets in India and in the OECD markets. This corresponds to about 1 MTPA of green hydrogen, or one fifth India’s Target for the production of green hydrogen under the country’s National Green Hydrogen Mission and 10 percent Europe’s Target for imports of green hydrogen by 20301.
Anil Chalamalasetty, Founder of Greenko Group and AM Green, said:
“The FID status achieved by our Kakinada plant underlines our commitment to provide zero-carbon energy solutions globally while meeting the highest standards such as EU RFNBO norms. This is an important milestone for AM Green as it reinforces our position as a leading energy transition solutions platform and helps decarbonize industries such as refining, shipping, fertilizers, power generation, chemicals and others through low-cost green molecules and their derivatives.“
About AM Green Group:
AM Green, founded by the founders of Hyderabad-based Greenko Group, Anil Chalamalasetty and Mahesh Kolliis one of India’s leading provider of solutions for the energy transition. AM Green uses its track record as an entrepreneur to develop new technologies and pathways that shape the future of energy. Our goal is to become one of the world’s lowest-cost producers of green hydrogen, green ammonia and other green molecules. In IndiaAM Green is developing production capacity for green molecules (green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels and various high-value chemicals) for decarbonisation in hard-to-reduce industries. The company will also develop an international renewable energy and storage business and a joint venture to manufacture electrolysers with John Cockerill from Belgium.
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Mister Suheil Imtiaz
Sr Manager, Public Affairs and Strategic Communication
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