The Asian Development Bank and Japan signed agreements with AM Green Ammonia to build a massive renewable ammonia plant in Kakinada. ADB President Masato Kanda said, "Ammonia is used every day to produce the fertilizer that helps feed the world." This project uses renewable energy to lower emissions in India.
The Asian Development Bank (ADB) and the Government of Japan have signed financing agreements with AM Green Ammonia (India) Pvt Limited to help build one of the world's largest plants to make ammonia using renewable energy in Kakinada in Andhra Pradesh, marking the first investment under the Action for Creating Energy Security for Long-term Resilience (ACCEL).
"Ammonia is used every day to produce the fertilizer that helps feed the world," ADB President Masato Kanda, said in a release .
"This project changes how we make it. By using renewable energy instead of fossil fuels, India can produce it with far lower emissions and at a scale that can help reshape this industry. As the first investment under ACCEL, it also shows how ADB and Japan can turn energy security into practical investments in new markets and jobs."
The project will convert a former ammonia and urea plant from natural gas-fueled production to renewable-powered green ammonia, with capacity to produce about 1.1 million tonne per year -- supporting a new export industry in India and cleaner production of an ingredient essential to fertilizer and industry. 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.
The upcoming facility will be implemented in two phases, each comprising an ammonia train of 547.5 kilotons per annum. Phase 1 includes the first ammonia train as well as the shared utilities for both phases and will be financed and commissioned first. Phase 2 will be implemented subsequently, subject to securing additional long term offtake arrangements. The project location is at the site of a former gas based ammonia and urea complex in Kakinada, Andhra Pradesh, acquired by AM Green and redeveloped as a green ammonia facility.