Andhra Pradesh to Host World’s Largest Green Ammonia Project at Kakinada

India’s clean energy transition received a major boost as Andhra Pradesh is set to host the world’s largest green ammonia project at Kakinada. Developed by AM Green, the project involves a $10-billion investment and aims to position India as a global exporter of green ammonia while supporting climate goals and energy security.

Why in News?

Andhra Pradesh will host the world’s largest green ammonia project at Kakinada, with AM Green planning phased commissioning up to 2030 and targeting India’s first green ammonia exports to global markets.

Project Overview and Investment Plan

• The project is being developed by AM Green through the conversion of an existing ammonia-urea complex at Kakinada.
• With a total planned investment of $10 billion, the facility will have a final production capacity of 1.5 million tonnes per annum (MTPA).
• Phased commissioning is planned, with 0.5 MTPA by 2027, 1.0 MTPA by 2028, and full capacity by 2030, making it the largest such project globally.

Integrated Renewable Energy Backbone

• The Kakinada facility will be powered by an integrated renewable energy system to ensure truly green production.
• It will be supported by around 7.5 GW of solar and wind capacity, nearly 1,950 MW of electrolyser capacity, and close to 2 GW of round-the-clock renewable power.
• Energy storage requirements will be met through pumped hydro projects, including the Pinnapuram pumped storage project in Andhra Pradesh, ensuring uninterrupted clean power supply.

Exports and Global Market Linkages

• Officials confirmed that the project will enable India’s first exports of green ammonia, with offtake planned for Germany, Japan, and Singapore.
• AM Green has already signed a long-term supply agreement with Uniper of Germany and is in advanced discussions with buyers in Japan and Singapore.
• This positions India as a reliable supplier of clean fuels to energy-hungry economies.

Employment and Regional Economic Impact

• The Kakinada green ammonia project is expected to generate up to 8,000 jobs during the construction phase, along with substantial long-term employment during operations.
• Additional indirect jobs will be created across sectors such as renewable energy, logistics, port services, and ancillary industries, strengthening the coastal economy of Andhra Pradesh and enhancing industrial development in the region.

Why Green Ammonia Matters

• Green ammonia is emerging as a critical fuel in the global energy transition. It can be used as a clean shipping fuel, for power generation, and as a carrier for green hydrogen in international trade.
• For India, domestic use of green ammonia in the fertiliser sector can significantly reduce import dependence, lower emissions, and support climate commitments under global agreements.

Green Ammonia and Energy Transition

• Green ammonia is produced using renewable electricity and green hydrogen, eliminating carbon emissions associated with conventional ammonia production.
• It is considered a zero-carbon alternative for some of the world’s most polluting industries, making it central to long-term decarbonisation strategies.

Key Summary at a Glance

Question

Q. Where will the world’s largest green ammonia project be located in India?

A. Paradip
B. Kandla
C. Kakinada
D. Tuticorin