AM Green Ammonia B.V. Approves Investment for Kakinada Plant

28 Aug 2024 CW Team

AM Green Ammonia B.V. has announced that it has reached a Final Investment Decision (FID) for its green ammonia project located in Kakinada, Andhra Pradesh. This project represents a significant step in the company?s strategy to achieve a production capacity of 5 million tonnes per annum (MTPA) of green ammonia by 2030, which is approximately equivalent to 1 MTPA of green hydrogen.

The new facility, which is set to begin production in the latter half of 2026, will be situated at a former urea plant in Kakinada that the company acquired earlier this year. The plant has already received pre-certification from CertifHy, meeting the EU RFNBO standards for green ammonia production, including requirements for additionally and the hourly matching of renewables. Most of the ammonia produced will be exported to European markets.

The company has completed the offtake term sheets with major industry players such as Uniper, Yara, and Keppel, aiming to address various applications in the green hydrogen sector. To support its operations, AM Green Ammonia has secured 1300 MW of continuous carbon-free power through a mix of 4500 MW solar and wind hybrid capacity, alongside 950 MW of pump storage power (PSP) capacity. A 25-year fixed-price power purchase agreement (PPA) with NTPC has been established for half of this power requirement, with the remaining capacity anticipated to be supplied by Gentari.

Additionally, the project will utilize advanced pressurized alkaline electrolyzers from John Cockerill, designed to improve operational efficiency and manage the intermittent nature of renewable energy supply.

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