The Asian Development Bank (ADB) and the Government of Japan have signed financing agreements with AM Green Ammonia (India) to support the construction of a large renewable ammonia plant in Kakinada, Andhra Pradesh. The project is the first investment under the Action for Creating Energy Security for Long-term Resilience (ACCEL) initiative.

The facility will convert a former natural gas-based ammonia and urea plant to renewable-powered green ammonia production. It is designed to produce about 1.1 mn t per year, supporting an export-oriented industry in India and reducing emissions associated with the production of ammonia, an essential input for fertilisers and several industrial applications.

The investment includes a $100 mn loan from the Leading Asia’s Private Infrastructure Fund 2. The fund is financed by the Japan International Cooperation Agency (JICA) and administered by ADB. The financing is intended to help redevelop the existing industrial site and establish renewable energy-based production infrastructure.

The project will be implemented in two phases, with each phase comprising an ammonia train capable of producing 547.5 kt per annum. Phase 1 will include the first ammonia train and shared utilities required for both phases. It will be financed and commissioned before the second phase.

Phase 2 will be taken up subsequently, subject to the securing of additional long-term offtake arrangements. AM Green acquired the former gas-based ammonia and urea complex in Kakinada and is redeveloping it as a green ammonia facility. The project is expected to support cleaner production and create the foundation for a new export industry in India.

The financing represents the first transaction under ACCEL, through which ADB and Japan are seeking to back investments linked to energy security, lower-emission technologies and employment generation. Renewable ammonia can be used in fertiliser manufacturing and may also serve as an energy carrier in international markets.