Andhra Pradesh has announced a landmark green energy initiative with the establishment of a green ammonia export terminal in Kakinada, aiming to position the state as a global hub for eco-friendly energy exports. The terminal, powered entirely by renewable energy, is projected to produce 1.5 million tonnes per annum (MTPA) of green ammonia and create thousands of jobs, marking a significant milestone in India’s green energy transition.
Project Overview
The project, announced on Friday by Andhra Pradesh IT Minister Nara Lokesh, is being developed by AM Green, a subsidiary of the Greenko Group. The terminal will be powered by 7.5 gigawatts (GW) of renewable energy along with 1 GW of pumped hydro storage, making it a fully sustainable operation.
Lokesh highlighted the project’s global significance, stating, “This is a historic first for India — exporting green energy in the form of ammonia to Germany, Singapore, and Japan.” He added that the $10 billion investment will generate over 8,000 high-quality jobs, establishing Andhra Pradesh as a key player in the international green energy value chain.
Foundation Stone Ceremony
Chief Minister N. Chandrababu Naidu is scheduled to lay the foundation stone for the terminal on Saturday, with Deputy Chief Minister Pawan Kalyan also in attendance. The plant will be located on 495 acres of land in Kakinada, an important industrial hub on India’s eastern coast.
Unlike conventional grey or blue ammonia, which relies on fossil fuels like coal, oil, and natural gas, green ammonia is completely carbon-free, produced using renewable energy sources. The project involves a brownfield conversion of the existing grey ammonia facility of Nagarjuna Fertilizers and Chemicals Limited into a state-of-the-art green ammonia plant.
Employment and Production Timeline
The plant is expected to create around 2,600 direct jobs during its operational phase, in addition to thousands of indirect employment opportunities in associated sectors. Production is targeted to commence by the end of 2027, with the facility exporting its first shipments by 2028.
AM Green has already signed an agreement with Germany-based Uniper SE to export 125 kilotonnes per annum (KTPA) of green ammonia. The project is also supported by international partners, including Petronas (Malaysia), GIC (Singapore), and ADIA (UAE), reflecting strong global interest in India’s green energy potential.
Global Significance and Industry Impact
Green ammonia serves as a clean energy carrier, allowing renewable energy to be exported in a stable, transportable form. This project represents India’s first major green ammonia export initiative, underscoring the country’s commitment to reducing carbon emissions and advancing sustainable energy technologies.
The terminal is expected to enhance India’s position in the global green energy market, particularly in supplying nations like Germany, Singapore, and Japan with carbon-free ammonia. Analysts predict that the project will boost foreign investment, foster technology transfer, and strengthen India’s renewable energy export capabilities.
Related Developments
In addition to the terminal, AM Green is establishing a 2-gigawatt electrolyser manufacturing facility in Kakinada, with an estimated investment of ₹2,000 crore. Electrolysers are critical for producing green hydrogen, the key feedstock for green ammonia, further consolidating Andhra Pradesh’s role as a hub for clean energy manufacturing and innovation.
With its strategic location, robust infrastructure, and government support, Kakinada is poised to become a major center for India’s green hydrogen and ammonia industry, attracting additional domestic and international investors.
Looking Ahead
The Kakinada green ammonia terminal is set to play a pivotal role in India’s net-zero ambitions and the global renewable energy supply chain. By exporting carbon-free energy products and creating thousands of jobs, the project aligns with the government’s vision of promoting sustainable development, industrial growth, and green technology adoption.
This landmark initiative signals a new era of clean energy exports for India, combining economic growth with environmental responsibility, and is expected to inspire similar projects in other states in the coming years.
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