AM Green Ammonia has achieved the final investment decision for its first million-tonne green ammonia project located in Kakinada, Andhra Pradesh, India. FID for this project, one of the largest such projects in the world, kick-starts the company’s target production capacity of 5 million tonnes per annum of green ammonia by 2030 which is equivalent to about 1 Mt/y of green hydrogen.

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. It will be located at an existing urea plant in Kakinada, which the company acquired earlier this year. It plans to create the planned green ammonia in time to commence production in the second half of 2026.

The Kakinada facility has been pre-certified by CertifHy as complying with the EU RFNBO requirements for green ammonia. Most of its product will be exported to European markets. The company has already executed provisional offtake terms 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 reportedly secured the required 1300 MW carbon-free power enabled through 4500 MW solar and wind hybrid capacity in combination with 950 MW of PSP (presumably pumped storage plant) capacity. A 25-year fixed price power purchase agreement with NTPC, covering half of the 1300 MW output, is already in place.

In addition to the Kakinada project, the company is also focused on the production of green ammonia across multiple locations in India to achieve a planned 5 Mt/y of green ammonia capacity by 2030, which is expected to accelerate efforts to achieve net zero targets in India as well as in OECD markets. This 1 Mt/y project represents a fifth of India’s target for green hydrogen production under the country’s National Green Hydrogen Mission and 10 % of Europe’s target for green hydrogen imports by 2030.