Japan invests in AM Green’s 1.5 mtpa green ammonia plant

Japan will loan India’s AM Green Ammonia $100m to develop its 1.5 million tonnes per annum (mtpa) green hydrogen-based ammonia plant in Kakinada, Andhra Pradesh.

The funding from the Japan International Cooperation Agency was administered by the Asian Development Bank (ADB), under its Action for Creating Energy Security for Long-term Resilience (ACCEL) initiative.

While no Japanese offtakers of Kakinada green ammonia volumes have been publicly named, Japanese Finance Minister Satsuki Katayama would support the country’s plans to diversify its energy supplies.

“Working closely with ADB, Japan will continue to support the diversification of energy sources, which will strengthen economic resilience across Asia,” he added.

Currently under construction, the Kakinada plant is due to begin producing 0.5 mtpa by 2027 before scaling up to its nameplate 1.5 mtpa capacity.

It recently won a €585m ($664m) H2Global contract to supply green hydrogen-based ammonia volumes to the European market for a decade, and also has offtake deals with German firms Uniper and RWE.

AM Green also signed term sheets with fertiliser major Yara and Singaporean asset manager Keppel for potential offtake.

The loan comes as India’s prospective position as a major green molecule supplier continues to strengthen.

Beyond AM Green, the country’s state-owned power utility NTPC recently revealed it was in negotiations with prospective green molecule consumers in Japan, South Korea, and Germany.

ACME Group has also secured trade beyond Europe with a 400,000 tonne-per-year green ammonia deal via its joint venture partner IHI, and a $1bn, 100,000-tonne, 10-year e-methanol deal with Japan’s Mitsubishi Gas Chemical.