AM Green bags long term contract from JERA to supply green ammonia in Japan
AM Green will supply around 70,000 tonnes of green ammonia annually over five years, with the potential to extend the term for additional supply.
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Updated - October 27, 2026 08:49 pm IST - HYDERABAD
Green ammonia molecular structure: central nitrogen atom bonded to three hydrogen atoms.
Clean energy, eco-friendly ammonia production, sustainable solutions in agriculture, industry, eco energy.
3D illustration | Photo Credit: The Hindu
JERA Co., Inc., which produces one-third of Japan’s electricity and is one of the largest LNG buyers in the world, and AM Green Ammonia (India) have entered into an agreement for long-term supply of green ammonia produced in India.
Under a Binding Heads of Agreement (HoA), AM Green will supply around 70,000 tonnes of green ammonia annually over five years, with the potential to extend the term for additional supply.
The green ammonia will be produced at AM Green’s Kakinada facility in Andhra Pradesh, which is planned to be commissioned by 2028-29.
The product would primarily be supplied to a business venture jointly to be established by Kawasaki Kisen Kaisha and Nippon Yusen Kabushiki Kaisha, which plans to utilise an ammonia bunkering vessel to supply fuel to ammonia-fueled car carriers.
The agreement represents a significant step towards expanding the application of green ammonia beyond power generation into maritime decarbonisation, AM Green said.
The green ammonia is intended to be supplied through receiving, storage and distribution facilities being developed adjacent to JERA’s Hekinan Thermal Power Station in Aichi Prefecture, Japan.
JERA said the agreement advances the end-to-end low-carbon ammonia value chain it has been building across production, transportation, storage and utilization.
The agreement reflects the growing demand for competitively priced green molecules from India and reinforces the strategic role of the Kakinada project in supporting Japan’s and maritime industry’s decarbonisation ambitions, said Mahesh Kolli, Group President, and Joint Managing Director of AM Green.
Earlier this month, the Asian Development Bank (ADB) and the Government of Japan signed financing agreements with AM Green to help build one of the world’s largest plants to make ammonia using renewable energy in India.
The investment includes a $100 million loan from the leading Asia’s Private Infrastructure Fund 2, financed by the Japan International Cooperation Agency (JICA) and administered by ADB.
business (general) / natural resources / energy resources
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