The final investment decision (FID) has been taken for a plant to produce green ammonia with a capacity of one million tons per year in India. Export of the hydrogen derivative to Europe is planned from 2026.
Greenko and Gentari-backed AM Green Ammonia announced today (27 August) that the project in Kakinada, in the Indian state of Andhra Pradesh, will use 1.3 GW of John Cockerill alkaline electrolysers to use “round-the-clock renewable energy”.
The plant is expected to produce one million tonnes of ammonia by 2026, and the developer intends to increase the plant’s capacity to five million tonnes by 2030.
Read more: Gentari and AM Green agree to produce green ammonia in India
The plant is proposed to be located at the existing Kakinada urea plant, which was previously acquired by AM Green Ammonia. The total expenditure for the plant includes electrolysis, ammonia synthesis and related other plant and infrastructure.
The company has already received pre-certification for compliance with the European criteria for renewable fuels of non-biological origin (RFNBO) for green hydrogen and says it intends to export “most” of the ammonia produced to Europe. Off-take agreements have already been signed with companies such as Uniper, Yara and Keppel.
The RFNBO rules include criteria for renewable energy additionality, hourly consistency and geographic correlation.
AM Green Ammonia said it has secured 1,300 MW of 24×7 renewable energy from 4.5 GW of solar and wind power through a fixed price power purchase agreement (PPA) with NTPC for a period of 25 years.
“The FID status achieved by our Kakinada power plant underlines our commitment to providing carbon-free energy solutions globally while meeting the highest standards such as EU RFNBO norms,” said Anil Chalamalasetty, founder of Greenko Group and AM Green.
“This is an important milestone for AM Green as it strengthens our position as a leading solution platform for the energy transition and helps decarbonize industries such as refining, shipping, fertilizers, power generation, chemicals and others through low-cost green molecules and their derivatives.”
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