August 26, 2024 [hydrocarbonengineering]- AM Green Ammonia B.V. has achieved Final Investment Decision (FID) for its first million-ton green ammonia project located in Kakinada, Andhra Pradesh, India. FID for this project kick starts the company’s target production capacity of 5 million tpy of green ammonia by 2030 – equivalent to about 1 million tpy of green hydrogen. The company, in addition to its founders, has Gentari and GIC as its shareholders.
The total project spend for the plant will include a green hydrogen generation unit and it’s subsequent conversion to green ammonia, along with all associated balance of plant and infrastructure.
This project will be located at an existing urea plant in Kakinada, which the company acquired earlier this year and forms part of the above CAPEX spend. It plans to convert this facility into a green ammonia producing unit, which will commence production in 2H26.
The Kakinada facility has been pre-certified by CertifHy as complying with the EU RFNBO requirements for green ammonia, including additionality and hourly matching of renewables. Most of the production from this facility will be exported to European markets.
The company has already executed offtake term sheets for this project with major players such as Uniper, Yara, Keppel and others for intended end use in a range of green hydrogen applications.
The company has secured the required 1300 MW round-the-clock carbon-free power enabled through 4500 MW solar & wind hybrid capacity in combination with 950 MW of PSP capacity.
A 25-year fixed-price power purchase agreement (PPA) with NTPC, covering half of the above, is already in place. The remaining capacity is expected to be supplied by Gentari.
The company has unique access to gigawatt-scale pump storage projects and a manufacturing partnership for electrolysers with John Cockerill of 2 GW scale. These reliable, pressurised alkaline electrolysers are envisioned to be deployed for this project.
Leveraging these capabilities provides solutions for the renewable intermittency issues and allows for up to 90% utilisation of electrolysers deployed, making this one of the most innovative and cost-efficient green ammonia projects globally.
In addition to the Kakinada project, the company is also focused on the production of green ammonia across multiple locations in India to achieve its planned 5 million tpy of green ammonia capacity by 2030, which is expected to accelerate efforts to achieve net zero targets in India, as well as in OECD markets. This will be equivalent to about 1 million tpy of green hydrogen, representing a fifth of India’s target for green hydrogen production under the country’s National Green Hydrogen Mission and 10% of Europe’s target for green hydrogen imports by 2030.
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