Andhra Pradesh Emerges as Global Green Ammonia Hub

Why the Project Matters Now

Andhra Pradesh Emerges as Global Green Ammonia Hub: Andhra Pradesh is set to host the world’s largest green ammonia project at Kakinada, marking a major milestone in India’s clean energy journey. The project strengthens India’s ambition to become a global hub for green fuels while advancing climate and energy security goals.

This development aligns closely with India’s long-term decarbonisation strategy and export-oriented clean energy vision.

Project Developer and Investment Scale

The project is being developed by AM Green, with a planned investment of $10 billion. It involves the conversion of an existing ammonia–urea complex at Kakinada into a large-scale green ammonia facility.

Once completed, the project will have a production capacity of 1.5 million tonnes per annum (MTPA), making it the largest of its kind in the world.

Static GK fact: Conventional ammonia production relies heavily on natural gas and contributes nearly 1% of global carbon emissions.

Phased Commissioning Timeline

The project follows a phased commissioning plan to scale production steadily. Capacity is expected to reach 0.5 MTPA by 2027, 1.0 MTPA by 2028, and the full 1.5 MTPA by 2030.

This gradual approach allows integration of large renewable energy systems while ensuring operational stability.

Integrated Renewable Energy Backbone

The Kakinada facility will operate entirely on renewable energy, ensuring carbon-free ammonia production. It will be supported by nearly 7.5 GW of solar and wind capacity and about 1,950 MW of electrolyser capacity.

Round-the-clock power will be ensured through close to 2 GW of firm renewable supply, supported by pumped hydro storage.

Static GK Tip: Pumped storage projects store energy by pumping water uphill during surplus power and releasing it to generate electricity during peak demand.

Energy Storage and Grid Stability

Energy storage needs will be met through pumped storage systems, including the Pinnapuram pumped storage project in Andhra Pradesh. This ensures uninterrupted clean power even during non-solar or low-wind periods.

Such storage-backed renewables are essential for heavy industries like ammonia production.

Global Export Linkages

The project will enable India’s first-ever green ammonia exports. Planned export destinations include Germany, Japan, and Singapore, all of which are seeking clean fuel imports to meet decarbonisation targets.

AM Green has already signed a long-term supply agreement with Germany’s Uniper, positioning India as a reliable clean energy supplier.

Employment and Regional Impact

During construction, the project is expected to generate up to 8,000 jobs. Long-term operational employment and indirect jobs will emerge across renewable energy, port logistics, shipping, and ancillary industries.

This will significantly strengthen the coastal industrial economy of Andhra Pradesh.

Strategic Importance of Green Ammonia

Green ammonia is a key enabler of the global energy transition. It can serve as a clean shipping fuel, a hydrogen carrier, and a low-emission input for fertilisers and power generation.

For India, domestic adoption can reduce fertiliser imports, cut emissions, and support commitments under global climate agreements.

Static GK fact: Ammonia contains about 17.6% hydrogen by weight, making it an efficient hydrogen carrier for long-distance transport.

Alignment with National Policy

The project aligns with the National Green Hydrogen Mission, which aims to position India as a global leader in green hydrogen and its derivatives. Large export-oriented projects like Kakinada are central to this strategy.

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