AM Green signs long-term green ammonia supply deal with Japanese energy player JERA | Hyderabad News
Hyderabad: AM Green Ammonia (India) Private Ltd and Japanese energy player JERA Co Inc have signed a binding agreement for the long-term supply of green ammonia from India to Japan in a deal aimed at supporting maritime decarbonisation and expanding Japan’s low-carbon ammonia value chain beyond power generation.The companies said the agreement covers about 70,000 tonnes of green ammonia a year for five years, with the possibility of extending the term for additional supply. The ammonia will be produced at AM Green’s Kakinada facility in Andhra Pradesh, which is scheduled to begin operations in 2028 or 2029.JERA plans to route the fuel through receiving, storage and distribution facilities being developed near its Hekinan Thermal Power Station in Aichi Prefecture. The ammonia is expected to be supplied primarily to a joint venture planned by Kawasaki Kisen Kaisha and Nippon Yusen Kabushiki Kaisha, which intends to use an ammonia bunkering vessel to fuel ammonia-powered car carriers.The companies described the project as one of the first large-scale green ammonia bunkering initiatives globally. They said the fuel meets internationally recognised low-carbon standards and is benchmarked against European market requirements.AM Green’s Kakinada plant will use renewable energy backed by pumped-hydro storage and alkaline electrolysis technology. The company is developing multiple green ammonia projects in India and is targeting a capacity of 5 million tonnes per year.JERA said the deal adds a renewable-based supply source to its low-carbon ammonia portfolio, strengthening supply security while helping build infrastructure for broader ammonia use in Japan’s industrial and commercial sectors.JERA Global Energy Solutions CEO and JERA’s senior managing executive officer Irtiza Sayyed termed the agreement an important step in advancing a practical end-to-end lower-carbon value chain for Japan, anchored by their power generation business.“Through our group structure, we combine JERA’s power generation and infrastructure platform in Japan with JERA Global Energy Solutions’ global supply capabilities. This allows us to connect diversified sources of ammonia with customer needs in Japan, contributing to Japan’s decarbonization goals,” he said.AM Green group president and joint managing director Mahesh Kolli said the pact reflects the growing demand for competitively priced green molecules from India and reinforces the strategic role of their Kakinada project in supporting Japan’s and the maritime industry’s decarbonisation ambitions.
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