AM Green signs major deal to supply green ammonia to Japan's JERA

AM Green Ammonia has signed a binding agreement with Japan's JERA to supply green ammonia produced in India.

Supply Details

Under the deal, AM Green will supply around 70,000 tonnes of green ammonia every year for five years, with an option to extend the term for extra supply. The fuel will be produced at AM Green's facility in Kakinada, Andhra Pradesh, which is scheduled for commissioning by 2028-29. A joint business venture by Kawasaki Kisen Kaisha and Nippon Yusen Kabushiki Kaisha will use an ammonia bunkering vessel to supply this fuel to ammonia-fueled car carriers.

Industry Impact

The fuel will be delivered through receiving, storage and distribution facilities being built near JERA's Hekinan Thermal Power Station in Aichi Prefecture. AM Green Group President and Joint Managing Director Mahesh Kolli stated that the agreement highlights growing global demand for clean energy from India and supports maritime decarbonisation. Earlier this month, the Asian Development Bank and the Government of Japan signed financing agreements with AM Green, including a $100 million loan from leading Asia's Private Infrastructure Fund 2 financed by the Japan International Cooperation Agency and administered by the ADB, to help build the large renewable energy ammonia plant.

Context

Green ammonia is produced using renewable energy sources instead of fossil fuels, making it a clean alternative for heavy industries like shipping and power generation. This project helps major industrial economies secure sustainable fuel supplies to meet their long-term emission reduction targets.