JERA, AM Green sign five-year green ammonia supply agreement for maritime decarbonisation
JERA will procure 70,000 tonnes of green ammonia annually from AM Green for five years, with supplies from its upcoming Kakinada facility intended to support Japan's emerging ammonia-fuelled maritime sector.
The green ammonia will be produced at AM Green’s facility in Kakinada, Andhra Pradesh, which is scheduled for commissioning in 2028-29.
HYDERABAD / TOKYO: Japan’s JERA Co. and India’s AM Green Ammonia have signed a binding Heads of Agreement for the long-term supply of green ammonia, marking a significant step towards developing India-Japan cooperation in renewable fuels and maritime decarbonisation.
Under the agreement announced on October 28, 2026, AM Green will supply approximately 70,000 tonnes of green ammonia annually to JERA over five years, with the possibility of extending the arrangement for additional supplies.
The green ammonia will be produced at AM Green’s facility in Kakinada, Andhra Pradesh, which is scheduled for commissioning in 2028-29. The project will use advanced alkaline electrolysis technology supported by round-the-clock renewable energy and pumped-hydro energy storage.
The agreement envisages supplying the green ammonia through receiving, storage and distribution facilities being developed adjacent to JERA’s Hekinan Thermal Power Station in Japan’s Aichi Prefecture.
A major application of the fuel will be maritime transportation. It is primarily intended for a proposed joint venture between Kawasaki Kisen Kaisha and Nippon Yusen Kabushiki Kaisha, which plans to use an ammonia bunkering vessel to supply fuel to ammonia-powered car carriers.
The initiative is among the first large-scale green ammonia-based bunkering projects globally and represents an expansion of JERA’s ammonia utilisation beyond power generation into the maritime sector.
The agreement also advances JERA’s strategy to develop an integrated low-carbon ammonia value chain covering production, transportation, storage and utilisation. Sourcing renewable-based ammonia from India will diversify its planned low-carbon ammonia portfolio and strengthen supply security for customers pursuing decarbonisation.
The green ammonia will comply with internationally recognised low-carbon standards and be benchmarked against European market requirements.
For AM Green, the agreement represents one of its first delivered-basis supply contracts in the Asian market and a milestone in establishing direct green-fuel supply to Japan. The partnership also strengthens India’s potential as a major international supplier of renewable-based fuels.
Irtiza Sayyed, Senior Managing Executive Officer of JERA and CEO of JERA Global Energy Solutions, said the agreement would help establish a practical end-to-end lower-carbon value chain for Japan, serving industries beyond power generation.
He said JERA’s power generation and infrastructure platform in Japan, combined with JERA Global Energy Solutions’ international supply capabilities, would connect diversified ammonia sources with customer requirements and support Japan’s decarbonisation objectives.
Mahesh Kolli, Group President and Joint Managing Director of AM Green, said the partnership reflected growing demand for competitively priced green molecules from India and highlighted the strategic importance of the Kakinada project in supporting Japan’s and the maritime industry’s decarbonisation ambitions.
He said the combination of renewable energy, large-scale energy storage and advanced green ammonia production would create a reliable and scalable supply platform for international markets.
India’s green ammonia ambitions
AM Green Group, promoted by the founders of Greenko Group and backed by investors including Gentari and GIC, is developing green ammonia projects across India, targeting a production capacity of five million tonnes per annum.
Its 1-million-tonne-per-annum Kakinada facility, currently under construction, is expected to be among the world’s largest green ammonia production plants.
The JERA agreement adds an important international dimension to the project, positioning Andhra Pradesh as a potential production and export hub for renewable-based industrial fuels.
