AM Green Group is set to mark a historic milestone as Andhra Pradesh prepares to host India’s first and largest 1.5 million tonnes per annum (MTPA) green ammonia project at Kakinada. The landmark project represents a significant leap in India’s clean energy transition and positions Andhra Pradesh as a frontrunner in the emerging green hydrogen and ammonia economy.
N. Chandrababu Naidu, Hon’ble Chief Minister of Andhra Pradesh, and Konedala Pawan Kalyan, Hon’ble Deputy Chief Minister, will visit the project site on January 17, 2026. The leaders will preside over a ceremony marking the erection of the first major equipment at the facility, a key construction milestone. Senior government officials, industry leaders, and district authorities are also expected to attend the event.
A National Milestone in India’s Energy Transition
The AM Green Kakinada project is being developed at a scale unprecedented in India and is aligned with the country’s long-term vision of achieving Net Zero emissions by 2070 and energy independence by 2047. The project also reinforces Andhra Pradesh’s leadership under the state’s Integrated Clean Energy Policy 2024, which aims to attract large-scale investments in renewable energy, green fuels, and advanced manufacturing.
Green ammonia is emerging as a critical solution for decarbonising hard-to-abate sectors such as fertilisers, chemicals, shipping, and heavy industry. By replacing fossil-fuel-based ammonia production with renewable-powered processes, the project will eliminate CO₂ emissions traditionally associated with ammonia manufacturing.
Technology and Scale: India’s Largest Green Ammonia Facility
The Kakinada green ammonia facility will produce green hydrogen through water electrolysis powered entirely by renewable energy and subsequently convert it into green ammonia. The project is expected to deliver annual carbon abatement of approximately 3 million tonnes of CO₂, making it one of the most impactful industrial decarbonisation initiatives in the country.
At full scale, the project integrates:
- 7.5 GW of renewable energy capacity
- 2 GW of pumped storage capacity
- 1,950 MW of electrolyser capacity
This integrated configuration makes it India’s largest green ammonia project, designed to ensure round-the-clock, reliable production of green hydrogen and ammonia.
A key enabler of this integration is India’s first pumped hydro storage project at Pinnapuram, which will support renewable power balancing and grid stability—an essential requirement for large-scale electrolysis operations.
Major Investments and Economic Impact
The development involves an investment exceeding USD 2 billion in green ammonia plant capacity and further enables USD 8 billion worth of renewable energy investments. The project will also revive the erstwhile Nagarjuna Fertilizers and Chemicals Limited (NFCL) plant, transforming a legacy industrial site into a next-generation clean energy hub.
Employment generation is expected to be substantial:
- Over 8,000 jobs during the construction phase
- Around 1,500 direct jobs during operations
- Significant indirect employment across logistics, engineering, services, and ancillary industries
The project is also expected to catalyse broader regional development, including improvements in road and rail connectivity, growth of ancillary manufacturing, and strengthening of renewable energy infrastructure in the region.
Global Offtake Agreements and Export Leadership
The Kakinada project has already secured India’s first long-term binding green ammonia offtake agreement with Uniper, marking a major breakthrough for India’s green exports. In addition, AM Green has entered into commercial agreements with Yara Clean Ammonia and Keppel.
These agreements position the project as India’s first large-scale green ammonia export initiative to Europe, strengthening India’s role in global clean energy supply chains and supporting Europe’s industrial decarbonisation goals.
Strategic Importance for Andhra Pradesh
The visit by the Chief Minister and Deputy Chief Minister underscores the Andhra Pradesh government’s commitment to industrial innovation, climate responsibility, and policy-led clean energy development. The project aligns closely with the state’s vision to become a global hub for renewable energy, green hydrogen, and sustainable manufacturing.
By anchoring such a large-scale project, Andhra Pradesh is expected to attract further green investments, boost state revenues, create high-quality employment, and reinforce its leadership in India’s clean energy transition.
A Catalyst for India’s Green Hydrogen Economy
The AM Green Kakinada project is widely viewed as a catalyst for India’s green hydrogen and ammonia ecosystem, demonstrating how large-scale renewable integration, storage, and advanced electrolysis can work together at industrial scale.
As India accelerates its clean energy ambitions, projects of this magnitude are expected to play a central role in reducing emissions, enhancing energy security, and positioning the country as a global exporter of green fuels.
The upcoming visit and the milestone being commemorated mark not just a construction achievement, but a defining moment in India’s journey toward a sustainable, low-carbon industrial future.
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