AM Green’s ammonia project in Kakinada gets approval

Kakinada: AM Green Ammonia BV, a venture floated by founders of Greenko Group, on Tuesday said it has reached final investment decision (FID) for its one million tonnes green ammonia project in Kakinada in Andhra Pradesh.

Without giving investment details, the firm said FID essentially would lead to the start of project work. AM Green, incorporated by the founders of Hyderabad-based Greenko Group - Anil Chalamalasetty and Mahesh Kolli, is developing one of world’s largest green ammonia platforms starting with 1 million tonne of production capacity at Kakinada in two phases and ramping capacity to 5 million tonnes per annum of green ammonia by 2030 - equivalent of 1 million ton per annum of hydrogen. The company, in addition to its founders, has Gentari and GIC as its shareholders.

“The total project spend for the plant will include a green hydrogen generation unit and it’s subsequent conversion to green ammonia, along with all associated balance of plant and infrastructure,” the statement said. The project will be located at an existing urea plant in Kakinada, which the company acquired earlier this year. The company plans to convert this facility into a green ammonia producing unit, which will commence production in the second half of 2026.

“The company has already executed offtake term sheets for this project with major players such as Uniper, Yara, Keppel and others for intended end use in a range of green hydrogen applications,” it said. Also, it has secured the required 1300 MW round-the-clock carbon-free power enabled through 4500 MW solar and wind hybrid capacity in combination with 950 MW of PSP capacity. A 25-year fixed-price power purchase agreement (PPA) with NTPC for this is already in place. The remaining capacity is expected to be supplied by Gentari. “The company has unique access to gigawatt-scale pump storage projects and a manufacturing partnership for electrolysers with John Cockerill of 2GW scale. These reliable, state of the art pressurized alkaline electrolyzers are envisioned to be deployed for this project,” the statement said.