Andhra Pradesh Launches World’s Largest Green Ammonia Complex in Kakinada
Andhra Pradesh Launches World’s Largest Green Ammonia Complex in Kakinada
Kakinada, Andhra Pradesh – In a major boost to India’s clean energy ambitions, the state of Andhra Pradesh is set to host the world’s largest green ammonia production complex in Kakinada. Developed by AM Green, the project marks India’s first large-scale green ammonia initiative and positions the country as a potential exporter of clean fuels to global markets.
The complex, spanning a 495-acre site previously occupied by Nagarjuna Fertilizers and Chemicals Limited near Kakinada Port, targets a full production capacity of 1.5 million tonnes per annum (MTPA) of green ammonia. Green ammonia is produced using renewable energy to generate hydrogen via electrolysis, combined with nitrogen, resulting in a zero-carbon fuel ideal for applications in shipping, power generation, fertilizers, and as a carrier for green hydrogen.
The project involves a massive $10 billion (approximately ₹83,000 crore) investment and is being implemented through a brownfield conversion of the existing ammonia-urea facility. It integrates 7.5 gigawatts (GW) of solar and wind power capacity, 1,950 megawatts (MW) of electrolyser capacity, and 2 GW of round-the-clock renewable power supported by pumped hydro storage, including India’s first such facility at Pinnapuram in Andhra Pradesh.
AM Green plans phased commissioning: an initial capacity of 0.5 million tonnes by 2027, scaling to 1 million tonnes by 2028, and reaching the full 1.5 million tonnes by 2030. The facility is expected to avoid nearly 2 million tonnes of CO2 emissions annually once fully operational.
The project promises significant economic benefits, including over 8,000 jobs during the construction phase, along with high-skilled employment in operations, renewable energy, logistics, port services, and related sectors.
A key highlight is the export focus. AM Green has signed a long-term offtake agreement with Germany’s Uniper for up to 500,000 tonnes per year of renewable ammonia (certified as Renewable Fuel of Non-Biological Origin or RFNBO), with first shipments expected as early as 2028. Discussions are ongoing with potential buyers in Japan and Singapore. This marks India’s shift from energy import dependence to becoming a clean-energy exporter, with green ammonia from Kakinada supporting global decarbonization in hard-to-abate sectors like shipping.
The initiative aligns with Andhra Pradesh’s Integrated Clean Energy Policy, 2024, which aims to establish the state as a leading hub for green hydrogen and ammonia production—often referred to as positioning Andhra Pradesh as the “Saudi Arabia of green energy.” It also supports India’s National Green Hydrogen Mission, targeting 5 million tonnes of green hydrogen production by 2030.
AM Green, backed by the founders of Greenko Group and partners including Malaysia’s Gentari (Petronas-linked), Singapore’s sovereign wealth fund GIC, and UAE’s Abu Dhabi Investment Authority (ADIA), is also planning a 2 GW electrolyser manufacturing unit in Kakinada with an additional investment of around ₹2,000 crore.
The first major equipment erection ceremony for the complex took place on January 17, 2026, attended by Chief Minister N. Chandrababu Naidu and Deputy Chief Minister K. Pawan Kalyan. While some opposition voices have noted that initial groundwork and planning began under the previous government, the current administration has accelerated progress and highlighted it as a flagship project for clean energy leadership.
This development underscores Andhra Pradesh’s commitment to sustainable industrial revival and global climate action, transforming a legacy industrial site into a cornerstone of the green economy.
