JERA–AM Green Ammonia Agreement Links Kakinada Supply with Japanese Marine Fuel Plans

Summary

JERA and AM Green have signed a binding heads of agreement covering approximately 70,000 tonnes of green ammonia annually for five years. Supply from Kakinada is intended to support Japanese marine-fuel operations through infrastructure near Hekinan, connecting Indian production with a planned bunkering business and ammonia-fuelled car carriers.

Article

Binding agreement establishes India–Japan supply terms

The JERA–AM Green ammonia agreement provides for long-term supply from AM Green’s production facility in Kakinada, Andhra Pradesh, to Japan, with scope to extend the five-year term.

Announced on 27 October 2026, the binding heads of agreement covers approximately 70,000 tonnes annually. The Kakinada facility is planned for commissioning in 2028–29.

Production will combine renewable electricity, pumped-hydro storage and alkaline electrolysis. The companies say this arrangement is intended to support internationally recognised low-carbon standards and European market requirements.

The ammonia would pass through receiving, storage and distribution facilities being developed beside JERA’s Hekinan Thermal Power Station in Aichi Prefecture. Its principal intended destination is a planned marine-fuel venture between “K” LINE and NYK.

The announcement does not disclose pricing, contract value or a specific first-delivery date.

Japanese vessel programme provides an intended customer base

A separate announcement on the same day set out how the marine demand could develop.

Seven Japanese companies agreed to establish an ammonia supply chain in the Chubu region and build and operate four ammonia-fuelled car carriers.

The participants are Imabari Shipbuilding, “K” LINE, Kyokuyo Shipyard, JERA, Shin Kurushima Dockyard, NYK and Nihon Shipyard.

Under their proposed structure, JERA will procure green ammonia and develop ship-loading facilities at Hekinan. Kyokuyo Shipyard will construct a dedicated bunkering vessel, scheduled for completion in 2030.

NYK or a wholly owned subsidiary will own and operate that vessel. An equally owned “K” LINE–NYK venture will manage fuel sales and ship-to-ship supply, primarily at Nagoya and Mikawa.

Each shipping company plans to introduce two ammonia-fuelled car carriers, also scheduled for completion in 2030. Their expected customers include Toyota Motor Corporation.

Procurement and infrastructure must advance together

Commercially, the announcements connect several elements often developed separately: fuel production, overseas procurement, terminal facilities, bunkering and vessel deployment.

That coordination matters because compatible ships require dependable fuel access, while suppliers need customers willing to purchase their output. Naming the intended delivery chain gives the agreement a clearer maritime application than a general statement of interest in ammonia.

However, the supply agreement and Japanese development programme describe future activity. They do not establish that fuel deliveries, bunkering services or ammonia-powered car-carrier operations have begun.

Execution will require production and receiving facilities to be ready alongside the ships. The interval between Kakinada’s planned commissioning and the Japanese vessels’ scheduled completion will also require coordinated procurement and delivery planning.

Earlier European agreement provides export background

The Japanese arrangement follows AM Green’s earlier move to secure European customers.

In January 2026, Uniper and AM Green announced a long-term binding offtake agreement for up to 500,000 tonnes of renewable ammonia annually from AM Green’s Indian projects.

First shipments were expected as early as 2028 from the one-million-tonne-per-year Kakinada facility under construction. That agreement concerned ammonia intended to meet European renewable fuel of non-biological origin requirements.

The companies identified chemicals, fertilisers, refining and potentially shipping among the downstream applications.

The two arrangements therefore address different customer markets and uses. Their announced quantities should not be treated as evidence of production already achieved or exports already shipped.

Kakinada gains a defined maritime export opportunity

For Andhra Pradesh, the latest agreement strengthens the connection between renewable-energy investment and maritime trade.

A functioning export chain would require reliable production, storage, cargo handling and transport, alongside documentation demonstrating the product’s environmental characteristics. Those requirements create potential activity across the port-linked logistics network.

For Japan, the proposed arrangement extends ammonia procurement into shipping while drawing on infrastructure associated with an established power-generation location.

The next milestones are implementation of the supply terms, progress at Kakinada and development of Japan’s loading and bunkering assets. Together, these will determine whether the announced agreement becomes a dependable commercial fuel route.

FAQs

How much ammonia does the agreement cover?

Approximately 70,000 tonnes annually for five years, with potential extension.

Where will it be produced?

At AM Green’s Kakinada facility in Andhra Pradesh, planned for commissioning in 2028–29.

Where is the fuel intended to enter Japan?

Through facilities being developed beside JERA’s Hekinan Thermal Power Station in Aichi Prefecture.

Which ships are expected to use the fuel?

The intended supply chain supports four ammonia-fuelled car carriers planned by “K” LINE and NYK for completion in 2030.

Have deliveries started?

No deliveries were announced. Production, infrastructure and vessel deployment remain future milestones.