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AM Green’s USD 10 billion green hydrogen and ammonia project in Kakinada moves to key construction stage

#Infrastructure News#Industrial#India#Andhra Pradesh#Kakinada
Last Updated : 19th Jan, 2026
Synopsis

AM Green's USD 10 billion green hydrogen and green ammonia project in Kakinada has reached an important construction phase with the first major equipment erection ceremony scheduled shortly. The project, among India's largest clean energy investments, is being developed through the brownfield conversion of an existing ammonia-urea facility. With a planned capacity of 1.5 million tonnes per annum, it is expected to enable India's first exports of green ammonia. The project aligns with Andhra Pradesh's clean energy policy and targets global markets including Europe and East Asia.

AM Green's green hydrogen and green ammonia complex at Kakinada in Andhra Pradesh is moving into a critical phase of construction, marking steady progress on one of India's largest clean energy projects. The first major equipment erection ceremony is set to take place shortly and is expected to be attended by Chief Minister N Chandrababu Naidu and Deputy Chief Minister Konidala Pawan Kalyan, according to state government officials.


With a total planned investment of USD 10 billion, the project ranks among the most significant clean energy investments undertaken in the country so far. During the construction phase, it is expected to generate employment for up to 8,000 people, while operations are projected to create sustained high-skill jobs across renewable energy generation, logistics, storage, and port-related services.

AM Green is developing what is positioned as India's first and the world's largest green ammonia complex, with a total capacity of 1.5 million tonnes per annum. The facility is being created through the brownfield conversion of an existing ammonia-urea plant, making it one of the largest industrial transition projects currently underway in India. This approach also shortens development timelines while reducing the environmental footprint associated with new industrial construction.

The commissioning of the complex will be carried out in phases. The first phase targets a capacity of 0.5 million tonnes per annum by 2027, followed by an expansion to 1 million tonnes by 2028. Full capacity of 1.5 million tonnes per annum is planned to be achieved by 2030. Once operational, the facility is expected to enable India's first exports of green ammonia, which is increasingly being adopted globally as a clean fuel for shipping, power generation, and as a carrier for green hydrogen.

The project is supported by a large integrated renewable energy backbone. This includes 7.5 gigawatts of solar and wind generation capacity, 1,950 megawatts of electrolyser capacity, and 2 gigawatts of round-the-clock renewable power. The continuous power supply will be backed by pumped hydro storage, including India's first such facility at Pinnapuram in Andhra Pradesh, ensuring reliability for energy-intensive green hydrogen production.

On the export front, AM Green has secured long-term supply agreements with Germany-based utility Uniper and is in advanced discussions with potential buyers in Japan and Singapore. These arrangements represent some of India's earliest green energy export linkages with Europe and developed Asian economies. The first phase of exports is expected to be directed towards European markets, where demand for green fuels is rising due to stricter decarbonisation targets.

In the past year, AM Green has also strengthened its global logistics and export strategy through key partnerships. It announced a collaboration with the Port of Rotterdam Authority to create a dedicated green fuel corridor between India and Northwestern Europe, aimed at enabling 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. Earlier, the company partnered with global logistics firm DP World to develop advanced green fuel storage and export infrastructure in India and overseas.

The project aligns closely with Andhra Pradesh's Integrated Clean Energy Policy, 2024, which seeks to position the state as a national hub for green hydrogen and green ammonia production. State authorities have reiterated their commitment to providing policy support, infrastructure development, and faster clearances to attract large-scale clean energy investments.

Source PTI

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