Kakinada named Green Hydrogen Valley at AM Green project launch
Author: PPD Team Date: January 19, 2026
Andhra Pradesh Chief Minister N. Chandrababu Naidu on January 17, 2026, declared Kakinada as the Green Hydrogen Valley of India following the groundbreaking ceremony for a Rs 15,600 crore green ammonia project. The event marked the start of construction for what is being described as the world’s largest green ammonia complex.
Chief Minister Naidu and Deputy Chief Minister K. Pawan Kalyan performed the bhumi puja at the 495 acre site acquired by AM Green from Nagarjuna Fertilizers. Addressing the gathering, Naidu stated that the project is targeting initial production of 0.5 million metric tonnes (MMT) of green ammonia by mid-2027, with capacity planned to scale up to 1.5 MMT per year.
Naidu said the green ammonia produced at Kakinada will be largely exported to Europe, with Germany identified as a key market. He referred to the offtake agreement between AM Green and Uniper Global Commodities of Germany, which was signed under the National Green Hydrogen Mission (NGHM) and recently acknowledged by Prime Minister Narendra Modi and German Federal Chancellor Friedrich Merz.
The Chief Minister also announced an additional Rs 2,000 crore investment by AM Green for deploying 2 GW of alkaline electrolyzers at the Kakinada facility. He said the project would support efforts to address soil nitrogen and salinity issues in Andhra Pradesh while contributing to global decarbonisation goals.
Highlighting the state’s renewable energy potential, Naidu pointed to Andhra Pradesh’s 1,000 km coastline and its wind and solar resources. He said effective utilisation of these resources could bring down average power procurement costs from Rs 4.80 per unit to Rs 1.19 per unit within three years, while also reducing transmission losses.
Naidu and Deputy Chief Minister Kalyan assured full state government support to AM Green founder Anil Chalamalasetty and Group President Mahesh Kolli to enable timely execution of the project, in line with the Andhra Pradesh Integrated Clean Energy Policy 2024. Naidu also outlined other planned initiatives, including the rollout of India’s first drone ambulance in 2026 and the installation of a quantum computer in Amaravati within nine months.
Photo Source: @AndhraPradeshCM/x
