New Delhi: The Asian Development Bank (ADB) and the government of Japan have signed a financing agreement with AM Green Ammonia—a firm backed by the founders of Greenko—for its 1.1-million-tonne green ammonia project in Kakinada, Andhra Pradesh.
In a statement, the ADB said the investment includes a $100 million loan from its Leading Asia’s Private Infrastructure Fund 2, financed by the Japan International Cooperation Agency (JICA).
“The Asian Development Bank and the government of Japan have signed financing agreements with AM Green Ammonia (India) Private Limited to help build one of the world’s largest plants to make ammonia using renewable energy in India, marking the first investment under the Action for Creating Energy Security for Long-term Resilience (ACCEL),” the statement said.
ACCEL was launched in May by the ADB and Japan to help countries and businesses in Asia and the Pacific region manage rising energy prices and build stronger energy systems for the future. The initiative works on two tracks: supporting corporate liquidity in the short term, particularly for small and medium-sized enterprises; and supporting a transition toward more diversified and sustainable energy systems in the medium to long term.
Japan supports ACCEL through its Japan-financed and ADB-administered trust funds and through collaboration with Japanese development finance institutions, including JICA and the Japan Bank for International Cooperation (JBIC), to maximize development impact.
Plant conversion
The project will convert a former ammonia and urea plant from natural gas-fuelled production to renewable-powered green ammonia, with capacity to produce about 1.1 million tonnes per year—supporting a new export industry in India and cleaner production of an ingredient essential to fertilizer and industry.
“The investment includes a $100 million loan from the Leading Asia’s Private Infrastructure Fund 2, financed by the Japan International Cooperation Agency and administered by ADB,” it added.
Commenting on the development, ADB president Masato Kanda said, “Ammonia is used every day to produce the fertilizer that helps feed the world. This project changes how we make it. By using renewable energy instead of fossil fuels, India can produce it with far lower emissions and at a scale that can help reshape this industry. As the first investment under ACCEL, it also shows how ADB and Japan can turn energy security into practical investments in new markets and jobs.”
Noting that strengthening resilience of Asia’s energy supply chains is essential, Japan’s finance minister Satsuki Katayama said that working closely with the ADB, Japan will continue to support the diversification of energy sources, which will strengthen economic resilience across Asia.
The 1.1-million-tonne green ammonia plant in Kakinada is expected to be among the largest green ammonia plants in the world.
AM Green Ammonia, with AM Green, Gentari, GIC and Abu Dhabi Investment Authority (ADIA) as partners, is developing a portfolio of green ammonia plants across Kakinada, Tuticorin and Kandla. The first plant of this portfolio is under construction in Kakinada, which achieved its ₹12,500 crore final investment decision in 2024.
The project is supported by several players including Casale, Air Liquide, Rely, a joint venture between Technip Energies and John Cockerill, Toyo, Gentari and NTPC Renewables, among others.
In January, AM Green Ammonia signed a long-term agreement with Germany-based energy firm Uniper Global Commodities SE for an annual offtake of up to 500,000 tonnes of green ammonia from India. It had earlier signed agreements with other European entities Yara and RWE for offtake of green ammonia for the Kakinada plant.