AM Green Ammonia reaches final investment decision

AM Green Ammonia B.V., a Greenko Group venture, has reached a significant milestone with the final investment decision (FID) for its 1 million-tonne green ammonia project in Kakinada, Andhra Pradesh, the company said in a statement on Tuesday. The investment amount decided for the project is around ₹12,500 crore, a person aware of the development told Mint. 

FID, a crucial step in project development, signifies the commitment of financial resources to move forward with execution.

This also marks a pivotal moment in the company’s ambitious plan to decarbonize industries worldwide and position itself as a global leader in green energy solutions, Chalamalasetty added.

With this FID, AM Green kick-starts its ambitious goal to reach a production capacity of 5 million tonnes per annum (MTPA) of green ammonia by 2030, equating to about 1 MTPA of green hydrogen. 

Promoted by Greenko Group founders Mahesh Kolli and Chalamalasetty, M Green Ammonia counts Gentari and GIC among its shareholders.

The Kakinada project, with a total investment including a green hydrogen generation unit and its subsequent conversion to green ammonia, will be located at an existing urea plant that AM Green acquired earlier this year. Production is slated to commence in the second half of 2026, with the majority of output destined for European markets.

AM Green has already secured offtake agreements for the project with major players such as Uniper, Yara, Keppel, and others, targeting a range of green hydrogen applications, according to the company.

The company has locked in the necessary 1,300 MW of round-the-clock carbon-free power, enabled through a combination of 4,500 MW of solar and wind hybrid capacity and 950 MW of pumped storage project (PSP) capacity. A 25-year fixed-price power purchase agreement (PPA) with NTPC covers half of this capacity, with the remainder expected to be supplied by Gentari, the renewable energy arm of Malaysian energy giant Petronas.

In addition to its flagship Kakinada project, AM Green is eyeing multiple locations across India to achieve its 5 MTPA green ammonia target by 2030. This expansion is expected to significantly boost efforts toward achieving net-zero targets both in India and OECD markets. 

The planned capacity will equate to approximately 1 MTPA of green hydrogen, representing one-fifth of India’s green hydrogen production target under the National Green Hydrogen Mission and 10% of Europe’s import target for green hydrogen by 2030.