Green ammonia facility in Kakinada to be commissioned by 2028/29
AM Green Ammonia (India) Private Limited has entered into a Binding Heads of Agreement to supply 70,000 tonnes a year green ammonia produced in India to JERA Co Inc of Japan.
The green ammonia is intended to be supplied through receiving, storage and distribution facilities being developed adjacent to JERA’s Hekinan Thermal Power Station in Aichi Prefecture, Japan. A Binding Heads of Agreement has been signed a five-year supply with option for extension.
Green ammonia would primarily be supplied to a business venture jointly to be established by Kawasaki Kisen Kaisha Ltd and Nippon Yusen Kabushiki Kaisha, which plans to utilize an ammonia bunkering vessel to supply fuel to ammonia-fuelled car carriers.
This marks one of the first large scale green ammonia based bunkering initiative globally, both parties said in a statement on 2y Oct.
The green ammonia meets internationally recognized low-carbon standards and is benchmarked against the European market requirements.
Green ammonia will be produced at AM Green’s Kakinada facility in Andhra Pradesh, which is to be commissioned by 2028/29. The facility will be supported by AM Green’s innovative round-the-clock renewable energy architecture, reinforced by pumped-hydro storage, powered by advanced alkaline electrolysis technology.
This agreement advances the end-to-end low-carbon ammonia value chain JERA has been building across production, transportation, storage and utilization. It adds an additional source of supply and would extend the use of ammonia by JERA beyond power generation to maritime fuel, which will lead to the development of the infrastructure needed for broader ammonia utilization across Japan’s industrial and commercial sectors.
The long-term procurement of green ammonia from India would add renewable-based green ammonia to JERA’s planned supply of low-carbon ammonia portfolio further strengthening supply security and resilience that allows end customers to match supply to their decarbonization needs.
The agreement marks one of AM Green’s first delivered-basis supply contracts in the Asian market and a milestone for the company as it pioneers direct delivery of green fuels to Japan.
This landmark agreement further strengthens AM Green’s position as a global leader in renewable ammonia production, accelerating India’s emergence as a major supplier of green molecules and establishing AM Green as a partner for Japan and the broader Asian energy transition.
Irtiza Sayyed, JERA’s Senior Managing Executive Officer and JERA Global Energy Solutions CEO, said, “This agreement is an important step in advancing a practical end-to-end lower-carbon value chain for Japan, anchored by our power generation business and serving a broader range of industries. Through our group structure, we combine JERA’s power generation and infrastructure platform in Japan with JERA Global Energy Solutions’ global supply capabilities. This allows us to connect diversified sources of ammonia with customer needs in Japan, contributing to Japan’s decarbonization goals.”
Mahesh Kolli, Group President, and Joint Managing Director of AM Green, elaborated, “Our partnership with JERA marks another important milestone in AM Green’s journey to become a leading global supplier of renewable ammonia.
“This agreement reflects the growing demand for competitively priced green molecules from India and reinforces the strategic role of our Kakinada project in supporting Japan’s and maritime industry’s decarbonisation ambitions. By combining renewable energy, large-scale energy storage and advanced green ammonia production, we are building a reliable and scalable supply platform for international markets. We look forward to working closely with JERA to advance this partnership and contribute to the development of a resilient global green ammonia value chain.” Fiinews.com
