Coal India Limited (CIL) is taking a decisive step into the renewable energy sector with plans to develop 4.5 gigawatts (GW) of green energy capacity. The initiative, implemented in phases, carries a projected investment of ₹25,000 crore and aims to supply carbon-free power to green ammonia production facilities under AM Green, a venture backed by the promoters of Hyderabad-based Greenko Group.
Supporting AM Green’s Ambitious Targets
AM Green has set a target to produce five million tons per annum (MTPA) of green ammonia by 2030. They expect to locate these facilities in Kandla, Gujarat, or other suitable sites. To power these energy-intensive operations, AM Green will rely on renewable energy sourced directly from Coal India’s upcoming solar and wind projects.
Coal India and AM Green Ammonia (India) formalized the partnership with a non-binding memorandum of understanding (MoU) signed on May 7, 2025, in Kolkata. Touted as one of the largest renewable energy contracts globally, the MoU marks a milestone in India’s green energy transition.
Diverse Renewable Portfolio: Solar and Wind
As part of the 4.5 GW capacity, CIL plans to set up:
- 2,500 MW to 3,000 MW of solar power in high-insolation states like Gujarat and Rajasthan
- 1,500 MW to 2,000 MW of wind power in suitable southern regions of the country
This geographically distributed approach leverages India’s natural advantages in renewable resources, ensuring optimal energy yield and project scalability.
Integrated Green Power Through Pumped Hydro Storage
AM Green will develop pumped hydro storage systems to integrate the generated solar and wind energy, ensuring reliability and continuous power supply. The hybrid energy model will manage the intermittency of renewables. It will provide a steady, round-the-clock green energy supply, which is critical for the uninterrupted operation of ammonia production units.
Driving India’s Energy Transition
The initiative underscores Coal India’s strategic pivot towards clean energy while aligning with India’s broader climate goals. As reported by projectstday.com, it positions CIL as a key player in the green hydrogen and ammonia value chain. This paves the way for low-carbon industrial growth and a more sustainable future.
