CM to Lay Foundation for Environment-friendly Green Ammonia Project in Kakinada Tomorrow

This marks a milestone in India’s clean-energy journey. Billed as the first green ammonia project of its kind in the country, the environment-friendly facility is being set up by AM Green, a part of the Greenko Group, with an investment of Rs 13,000 crore. The project has an annual production capacity of 1.5 million metric tonnes per annum (MMTA) and is expected to generate direct and indirect employment for around 2,600 youths.

The state government had accorded approvals for the project in January last year, underscoring its commitment to positioning AP as a national hub for green energy and advanced clean fuel manufacturing.

Unlike conventional grey or blue ammonia, which are produced using coal, oil, or natural gas, green ammonia is manufactured using renewable energy sources and causes no carbon emissions.

With the global community accelerating efforts towards decarbonisation and net-zero emission targets, green hydrogen and green ammonia are increasingly being viewed as fuels of the future. In this backdrop, the Kakinada project is expected to emerge as a flagship initiative for India’s energy transition and a matter of pride for the nation.

The project involves the redevelopment of the existing grey ammonia plant of Nagarjuna Fertilizers and Chemicals Ltd into a state-of-the-art green ammonia facility through a brownfield conversion. Spread across 495 acres, the plant is scheduled to commence commercial production by the end of 2027.

Strategically located near Kakinada port, the facility enjoys a significant logistical advantage for global exports. AM Green has already entered into a long-term agreement with Germany-based Uniper SE to export 125 kilo tonnes per annum of green ammonia starting from 2028.

The project is being developed with the support of prominent global partners, including Malaysia-based Petronas, Singapore’s sovereign wealth fund GIC, and Abu Dhabi-based ADIA, lending it a strong international backing and credibility.

In addition to the green ammonia plant, AM Green is also setting up a 2-gigawatt electrolyser manufacturing unit in Kakinada at an estimated cost of Rs 2,000 crore, further strengthening Andhra Pradesh’s clean energy ecosystem and industrial base, an official announcement said.