With USD 10 bn green project, Andhra to bolster India's clean energy plans

Andhra Pradesh is set to make a major contribution to India’s efforts towards position itself as a supplier of green energy to international markets, including Germany, Japan, and Singapore, as a green hydrogen and green ammonia project worth USD 10 billion, located in its port city of Kakinada, is poised to achieve a significant construction milestone with its first major equipment-installation ceremony.

CM, deputy CM to attend

The first major equipment erection event of AM Green's Green Hydrogen and Green Ammonia Complex on Saturday (January 17) will be attended by Chief Minister N Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan, state government officials said.

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The project is among the largest clean-energy investments in India to date. It is also expected to generate up to 8,000 jobs during construction, along with substantial high-skill employment during operations and across allied sectors, including renewable energy, logistics, storage and port services.

AM Green is developing India’s first and the world’s largest green ammonia complex, with a planned capacity of 1.5 million tonnes per annum, through the brownfield conversion of an existing ammonia-urea facility.

The project will witness commissioning in phases, starting with 0.5 million tonnes per annum by next year, scaling up to one million tonnes by 2028 and reaching full capacity by 2030.

To aid India's first exports of green ammonia

Once operational, the facility will enable India's first exports of green ammonia, used globally for clean shipping fuel, power generation and as a carrier for green hydrogen.

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The integrated project spans 7.5 gigawatts of solar and wind capacity, 1,950 megawatts of electrolyser capacity and 2 gigawatts of round-the-clock renewable power supported by pumped hydro storage, including India's first such facility at Pinnapuram in Kurnool, Andhra Pradesh.

AM Green has signed long-term supply agreements with Germany-based utility Uniper and is engaged with buyers in Japan and Singapore, marking India's first green energy export linkages with Europe and advanced Asian economies.

Andhra's clean energy ambitions

The project aligns with Andhra Pradesh's Integrated Clean Energy Policy, 2024, which aims to position the state as India's main hub for green hydrogen and green ammonia, the state government said.

Once operational, the facility will enable India's first exports of green energy molecules, marking a shift from energy import dependence to clean-energy exports and placing Andhra Pradesh at the centre of the global green-energy value chain.

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AM Green, backed by the founders of Greenko Group, is developing green ammonia plants through AM Green Ammonia. AM Green Ammonia is a partnership between AM Green, Malaysia-based Gentari, Singapore's sovereign wealth fund GIC and Abu Dhabi Investment Authority.

Construction at the Kakinada facility has already begun, placing the project among a limited number of large-scale green ammonia facilities globally that meet Renewable Fuels of Non-Biological Origin, or RFNBO, standards.

The project is being executed through the brownfield conversion of an existing ammonia-urea facility, representing one of the country's largest industrial transition initiatives.

The project showcases Andhra Pradesh's ability to host India's first fully integrated green-energy value chain within a single state. It spans large-scale solar and wind generation, round-the-clock renewable power backed by pumped hydro storage, green hydrogen and green ammonia production, and port-based export infrastructure.

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In May last year, AM Green announced partnership with Port of Rotterdam Authority to establish a dedicated green fuel corridor linking India with Northwestern Europe. The alliance aims to enable annual trade of up to 1 million tonnes of green fuels, such as green ammonia and sustainable aviation fuel, valued at nearly USD 1 billion.

A year back, AM Green had also partnered with global logistics firm DP World to develop advanced green fuel storage and export facilities, both in India and overseas, further strengthening its push into international markets.

Kakinada green energy to be used internationally

Green ammonia produced at Kakinada will be used internationally as a clean shipping fuel, for power generation and as a carrier for green hydrogen, supporting global decarbonisation efforts.

The state government said it would continue to provide policy support, infrastructure and expedited clearances to attract globally significant clean-energy investments.

"This is not merely an industrial project, but a strategic step in positioning Andhra Pradesh and India as leaders in clean-energy exports and climate action," the state government said.

(With agency inputs)