The Asian Development Bank (ADB) and the government of Japan signed financing agreements with AM Green Ammonia (India) Pvt Ltd to support the development of a large-scale green ammonia plant in Kakinada, Andhra Pradesh. The project aims to produce ammonia using renewable energy, reduce emissions and establish a new export-oriented industry in India. The investment also marks the first project under the Action for Creating Energy Security for Long-term Resilience (ACCEL) initiative, which seeks to strengthen energy security through investments in sustainable energy solutions.
ADB and Japan Support Low-Carbon Ammonia Production
ADB President Masato Kanda highlighted the project’s potential to transform ammonia production and strengthen India’s position in the global clean energy market. “Ammonia is used every day to produce the fertilizer that helps feed the world,” Kanda said in a statement. “This project changes how we make it. By using renewable energy instead of fossil fuels, India can produce it with far lower emissions and at a scale that can help reshape this industry. As the first investment under ACCEL, it also shows how ADB and Japan can turn energy security into practical investments in new markets and jobs.”
Kakinada Plant to Produce 1.1 Million Tons of Green Ammonia Annually
The project will transform a former natural gas-based ammonia and urea complex in Kakinada into a renewable-powered green ammonia facility. Once fully developed, the plant is expected to produce approximately 1.1 million tons of green ammonia annually. By replacing fossil fuel-based production with renewable energy, the facility aims to reduce the carbon footprint of ammonia manufacturing. Moreover, the project could help establish India as a supplier of lower-emission ammonia for international markets. Ammonia is an essential raw material for fertiliser production and various industrial applications. Therefore, producing it with renewable energy could support the decarbonisation of industries that depend on conventional ammonia.
Japan-Backed $100 Million Loan to Finance the Project
The financing package includes a $100 million loan from the Leading Asia’s Private Infrastructure Fund 2 (LEAP-2). The Japan International Cooperation Agency (JICA) finances the fund, while ADB administers it. This investment represents a key step towards mobilising international development finance for large-scale clean energy infrastructure. In addition, it highlights cooperation between India, Japan and ADB to advance energy security and low-carbon industrial development.
Green Ammonia Project to Be Developed in Two Phases
AM Green will implement the Kakinada facility in two phases, with each phase comprising an ammonia production train with an annual capacity of 547.5 kilotonnes. Phase 1 will include the first ammonia production train and shared utilities designed to serve both phases. The company will finance and commission this phase first. Phase 2 will follow subsequently, subject to securing additional long-term offtake agreements. This phased approach will enable the company to align further development with market demand and long-term supply commitments.
Project Strengthens India’s Green Ammonia Export Potential
The project site previously housed a natural gas-based ammonia and urea complex acquired by AM Green, which is now being redeveloped for green ammonia production. As global demand for lower-carbon industrial feedstocks grows, the Kakinada facility could help India expand its green ammonia production capacity and develop new export opportunities. As reported by thehindubusinessline.com, the project aims to combine renewable energy, international financing and industrial infrastructure to support cleaner ammonia manufacturing and India’s broader energy transition.
