India’s First Green Ammonia Project Begins in Andhra Pradesh

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India is set to take a significant leap in its clean energy journey with the development of its first green ammonia export-oriented project in Andhra Pradesh. Supported by an investment of around $10 billion, the initiative reflects India’s growing ambition to participate in global low-carbon fuel markets and strengthens Andhra Pradesh’s position as a future clean energy hub.

Green Ammonia Project Begins in Kakinada

The project will come up in Kakinada, where AM Green is developing an integrated green hydrogen and green ammonia facility. The start of major equipment installation will be marked in the presence of Chief Minister N Chandrababu Naidu. Rather than building a new plant from the ground up, the project will modernise and repurpose an existing ammonia-urea complex, showcasing a large-scale transition from conventional to green industrial production.

Large Investment and Employment Generation

Planned as the world’s largest green ammonia facility, the project will have an annual production capacity of 1.5 million tonnes. During construction, it is expected to create about 8,000 jobs. In the long run, it will generate skilled employment opportunities in renewable energy operations, energy storage, transport logistics, port services and plant maintenance, contributing to sustained industrial growth in the region.

Phased Rollout and Renewable Energy Backbone

The facility will be commissioned in phases, starting with 0.5 million tonnes per annum by 2027, increasing to 1.0 million tonnes by 2028 and reaching full capacity by 2030. Power for the complex will be sourced from a dedicated renewable energy ecosystem, including large-scale solar and wind projects totalling 7.5 GW, nearly 2 GW of electrolyser capacity and round-the-clock green power supply. Pumped hydro storage, including India’s first such installation at Pinnapuram, will support energy stability.

Export Focus and Strategic Role

AM Green has secured long-term supply commitments with overseas partners such as Uniper and is in discussions with buyers in Japan and Singapore. The green ammonia produced in Kakinada will be exported for use in cleaner maritime fuels, low-emission power generation and hydrogen-based applications. Through this project, Andhra Pradesh and India move closer to becoming important players in the global clean energy value chain.

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