India’s AM Green Ammonia will supply Japanese power firm Jera with around 70,000 tonnes of green ammonia each year from its 1.5 million tonnes per annum (mtpa) green hydrogen-based ammonia plant in Kakinada, Andhra Pradesh.
The five-year deal has an extension option and marks one of AM Green’s first delivered-basis supply contracts in the Asian market.
Under a binding heads of agreement (HoA), the green ammonia will be delivered to JERA’s storage and distribution facilities near the Hekinan Thermal Power Station in Aichi Prefecture, Japan.
This comes after AM Green Ammonia secured $100m from the Japan International Cooperation Agency to develop its Kakinada plant.
Mahesh Kolli, Group President and Joint Managing Director of AM Green, said, “This agreement…reinforces the strategic role of our Kakinada project in supporting Japan’s and maritime industry’s decarbonisation ambitions.”
The Kakinada plant is expected to be commissioned between 2028 and 2029. Its first 0.5 mtpa phase is currently under construction and due to be online in 2027.
AM Green continues to strengthen its position as a major green ammonia supplier, having already lined up deals with German energy firms Uniper and RWE.
In September, it also added a €585m ($664m) contract for green hydrogen-based ammonia volumes to the European market for a decade at the second H2Global auction.
Beyond AM Green, India is ramping up its targeting of the green ammonia market. State-owned NTPC recently revealed it was in negotiations with prospective green molecule consumers in Japan, South Korea, and Germany.
Maritime fuel
This deal will also extend JERA’s use of ammonia beyond power generation to maritime fuel.
The ammonia delivered to JERA’s storage and distribution facilities near the Hekinan Thermal Power Station will be primarily supplied to a fuel sales joint venture between Japanese shipping firms Kawasaki Kisen Kaisha (K Line) and Nippon Yusen Kabushiki Kaisha (NYK).
The companies form part of a consortium of seven Japanese companies, announced today [27 October], that aim to develop an ammonia fuel supply chain in Japan’s Chubu region.
Using ammonia procured from Jera, K Line and NYK plan to operate a total of four ammonia-fuelled car carriers, which are scheduled completion in 2030.
