AM Green Ammonia achieves final investment decision for Kakinada green ammonia project

AM Green Ammonia B.V. has reached a Final Investment Decision (FID) for its inaugural million-ton green ammonia project in Kakinada, Andhra Pradesh, India. The company aims to achieve a production capacity of 5 million tons per annum (MTPA) of green ammonia by 2030, equivalent to about 1 MTPA of green hydrogen. Alongside its founders, AM Green Ammonia counts Gentari and GIC as its shareholders.

The project, which involves a green hydrogen generation unit and its conversion to green ammonia, will be situated at an existing urea plant in Kakinada, acquired by the company earlier this year. Production at this facility is set to commence in the second half of 2026. The plant has been pre-certified by CertifHy to meet the EU RFNBO requirements for green ammonia, including criteria such as additionality and hourly matching of renewables. The majority of the green ammonia produced will be exported to European markets.

AM Green Ammonia has secured offtake term sheets with major companies like Uniper, Yara, and Keppel for a variety of green hydrogen applications. The company has also secured the necessary 1,300 MW of round-the-clock carbon-free power, facilitated by 4,500 MW of solar and wind hybrid capacity, combined with 950 MW of pump storage project (PSP) capacity. A 25-year fixed-price power purchase agreement (PPA) with NTPC covers half of this capacity, with the remaining power expected to be supplied by Gentari.

The project will utilize state-of-the-art pressurized alkaline electrolysers from John Cockerill, with a 2 GW scale, to address renewable intermittency issues, allowing up to 90% utilization of electrolyzers. This makes the Kakinada facility one of the most innovative and cost-efficient green ammonia projects in the world.

Beyond the Kakinada project, AM Green Ammonia is focusing on expanding green ammonia production across multiple locations in India to meet its 5 MTPA target by 2030. This expansion aligns with India’s National Green Hydrogen Mission and is expected to contribute significantly to achieving net-zero targets both in India and in OECD markets. The projected production will represent about one-fifth of India’s green hydrogen target and 10% of Europe’s green hydrogen import target by 2030.