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AM Green Ammonia B.V. has announced that it has reached the Final Investment Decision (FID) for its first million-tonne green ammonia project at Kakinada (Andhra Pradesh). The FID for this project kick-starts the company’s target production capacity of 5 million tonnes per annum (MTPA) of green ammonia by 2030 - equivalent to about 1 MTPA of green hydrogen. The company, in addition to its founders, has Gentari and GIC as its shareholders.
AM Green, incorporated by the founders of Hyderabad-based Greenko Group Anil Chalamalasetty and Mahesh Kolli, is one of the early energy transition solutions providers.
The total project spend for the plant will include a green hydrogen generation unit and its subsequent conversion to green ammonia, along with all associated balance of plant and infrastructure.
Utilising urea plant
“This project will be located at an existing urea plant, in Kakinada, which the company acquired earlier this year and forms part of the above capex spend. The company plans to convert this facility into a green ammonia-producing unit, which will commence production in the second half of 2026,” a company executive said.
The Kakinada facility has been pre-certified by CertifHy, as it is in line with the EU RFNBO requirements for green ammonia, including additionality and hourly matching of renewables. Most of the output from this facility will be exported to the European markets.
The company has already executed offtake term sheet for this project with major players such as Uniper, Yara, Keppel and others for intended end use in a range of green hydrogen applications.
Carbon-free power
It has also secured the required 1,300 MW round-the-clock carbon-free power enabled through 4,500 MW solar & wind hybrid capacity in combination with 950 MW of PSP capacity.
A 25-year fixed-price power purchase agreement (PPA) with NTPC, covering half of the above, is already in place. The remaining capacity is expected to be supplied by Gentari.
In addition to the Kakinada project, the company is focused on the production of green ammonia across multiple locations in India to achieve its planned 5 MTPA of green ammonia capacity by 2030, which is expected to accelerate efforts to achieve net zero targets in the country as well as in OECD (Organisation for Economic Cooperation and Development) markets.
“This weill help decarbonise industries like refineries, shipping, fertilizers, power generation, chemicals and others through low-cost green molecules and its derivatives,” Anil Chalamalasetty, Founder, Greenko Group & AM Green, said.
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