JERA, AM Green Sign Agreement for 70,000 Tonnes of Green Ammonia Supply

JERA and AM Green Ammonia have jointly entered into a Binding Heads of Agreement (HoA) with AM Green regarding the long-term supply of green ammonia produced in India. AM Green is backed by marquee investors like Gentari and GIC.

JERA and AM Green have agreed to the supply of approximately 70,000 tonnes of green ammonia annually for five years, with the possibility of extending the term for additional supplies. The green ammonia is intended to be supplied through receiving, storage and distribution facilities being developed adjacent to JERA’s Hekinan Thermal Power Station in Aichi Prefecture, Japan.

The green ammonia will primarily be supplied to a business venture to be jointly established by Kawasaki Kisen Kaisha and Nippon Yusen Kabushiki Kaisha. The venture plans to use an ammonia bunkering vessel to supply fuel to ammonia-fuelled car carriers. The initiative marks one of the first large-scale green ammonia-based bunkering projects globally. The green ammonia will meet internationally recognised low-carbon standards and be benchmarked against European market requirements.

The green ammonia will be produced at AM Green’s facility in Kakinada, Andhra Pradesh, India, which is planned to be commissioned by 2028–29. The facility will use advanced alkaline electrolysis technology and will be supported by AM Green’s round-the-clock renewable energy architecture, reinforced by pumped-hydro storage.

This agreement advances the end-to-end low-carbon ammonia value chain JERA has been building across production, transportation, storage and utilisation. It adds an additional source of supply and would extend the use of ammonia by JERA beyond power generation to maritime fuel, which will lead to the development of the infrastructure needed for broader ammonia utilisation across Japan's industrial and commercial sectors.

The long-term procurement of green ammonia from India would add renewable-based green ammonia to JERAs planned supply of low-carbon ammonia portfolio further strengthening supply security and resilience that allows end customers to match supply to their decarbonisation needs.

The agreement marks AM Greens’ pioneer direct delivery of green fuels to Japan.

Irtiza Sayyed, JERAs Senior Managing Executive Officer and JERA Global Energy Solutions CEO, said, "This agreement is an important step in advancing a practical end-to-end lower carbon value chain for Japan, anchored by our power generation business and serving a broader range of industries. Through our group structure, we combine JERAs power generation and infrastructure platform in Japan with JERA Global Energy Solutions global supply capabilities. This allows us to connect diversified sources of ammonia with customer needs in Japan, contributing to Japan’s decarbonisation goals.”

Mahesh Kolli, Group President and Joint Managing Director of AM Green, said, " Our partnership with JERA marks another important milestone in AM Greens journey to become a leading global supplier of renewable ammonia. This agreement reflects the growing demand for competitively priced green molecules from India and reinforces the strategic role of our Kakinada project in supporting Japan and the maritime industry's decarbonisation ambitions. By combining renewable energy, large-scale energy storage and advanced green ammonia production, we are building a reliable and scalable supply platform for international markets. We look forward to working closely with JERA to advance this partnership and contribute to the development of a resilient global green ammonia value chain."