Andhra Pradesh to get world’s largest green ammonia project at Kakinada

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• Andhra Pradesh to host world's largest green ammonia project at Kakinada
• AM Green to invest $10 billion, aiming for 1.5 MTPA capacity by 2030
• India's first green ammonia exports to Germany, Japan, Singapore planned

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Andhra Pradesh is set to host the world’s largest green ammonia project at Kakinada, with AM Green scheduled to hold the first major equipment erection ceremony on January 17, state government officials have said.

The project, with an estimated investment of $10 billion, is being developed by AM Green through the conversion of an existing ammonia-urea complex. Once fully commissioned, the facility is expected to have a capacity of 1.5 million tonnes per annum (MTPA).

Phased commissioning has been planned, with 0.5 MTPA targeted by 2027, 1.0 MTPA by 2028 and the full capacity by 2030.

Officials said the project would enable India’s first exports of green ammonia, with offtake planned for markets such as Germany, Japan and Singapore.

The project aligns with Andhra Pradesh’s Integrated Clean Energy Policy, 2024, under which the state seeks to attract investments in green hydrogen and green ammonia.

The facility is backed by an integrated renewable energy system, including about 7.5 GW of solar and wind capacity, around 1,950 MW of electrolyser capacity and nearly 2 GW of round-the-clock renewable power.

Power storage will be supported by pumped hydro projects, including one at Pinnapuram in Andhra Pradesh.

The Kakinada project is expected to generate up to 8,000 jobs in the construction phase, with additional employment during operations and across related sectors such as renewable energy, logistics and port services.

AM Green has signed long-term supply agreements with Uniper (Germany), and is in discussions with potential buyers in Japan and Singapore, officials said.

Green ammonia is expected to find several uses including as shipping fuel, for power generation and as a carrier for green hydrogen in international markets.

The project aligns with Andhra Pradesh’s Integrated Clean Energy Policy, 2024, under which the state is seeking to attract investments in green hydrogen and green ammonia.

The project is in step with India’s National Green Hydrogen Mission, under which the Centre aims to produce at least 5 million tonnes of green hydrogen annually by 2030, along with the development of export-oriented green hydrogen and green ammonia hubs.

The mission aims to position India as a global hub for the production and export of green hydrogen and its derivatives.

Green ammonia is considered critical to energy transition as it is seen as a zero-carbon alternative for some of the world's most polluting industries. India can reduce its import bill by using green ammonia in the fertiliser industry.