Coal India announced plans to establish clean energy projects with a combined capacity of approximately 4.5 gigawatts, at an estimated investment of Rs 250 billion (around $3 billion), as part of its commitment to achieving net-zero carbon emissions from its operations.

The state-run mining company has been gradually shifting its focus away from coal, a major source of pollution but still essential for meeting India’s current energy requirements. This transition aligns with the country's broader goal of reaching net-zero emissions by 2070.

The company revealed that it intends to supply clean energy, generated through solar and wind power projects, to AM Green Ammonia (India)'s upcoming green ammonia facilities. However, it did not specify a timeline for the development of these projects.

AM Green, backed significantly by the founders of India’s Greenko Group, has set a target to produce 5 million tons per annum (MTPA) of green ammonia by the year 2030.

Coal India’s move into clean energy comes at a time when it is also expanding its coal-based power capacity. This shift is occurring alongside rising electricity demand driven by climate change and rapid industrialisation.

To address the growing energy needs, India plans to increase its coal-fired power capacity by 80 gigawatts by 2031-32, up from the current 222 GW. Simultaneously, the country aims to scale up its clean energy capacity to at least 500 GW by 2030, compared to 172 GW at present.

Despite these ambitions, the renewable energy sector in India continues to face significant challenges, including limited interest in tenders, difficulties in acquiring land, delays in finalising power purchase agreements, and frequent project cancellations.

News source: Business Standard