AM Green Ammonia and Japan’s JERA have finalized a binding Heads of Agreement for the long-term provision of approximately 70,000 tonnes of green ammonia annually from India to Japan, establishing a new supply chain between an emerging facility in Andhra Pradesh and maritime decarbonization infrastructure in Aichi Prefecture.
The contract spans a five-year supply timeframe, with an option to extend for more quantities. The production of green ammonia is set to occur at AM Green’s Kakinada facility, expected to commence operations in 2028-29.
The ammonia will be delivered through receiving, storage, and distribution facilities being constructed adjacent to JERA’s Hekinan Thermal Power Station in Aichi. The primary aim is to create a business partnership between Kawasaki Kisen Kaisha and Nippon Yusen Kabushiki Kaisha, which intends to utilize an ammonia bunkering vessel to provide fuel for ammonia-fueled car carriers.
The companies referred to the initiative as among the first major green ammonia bunkering projects worldwide.
The agreement would broaden JERA’s intended application of ammonia beyond electricity production and assist in building the infrastructure for ammonia management and use throughout Japan’s industry and commerce.
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AM Green stated that the product will conform to globally acknowledged low-carbon criteria and be assessed against European market standards. The Kakinada initiative is designed to operate continuously with a renewable energy framework underpinned by pumped-hydro storage and sophisticated alkaline electrolysis methods. The provided information does not include the total investment for the project, the production capacity, or the renewable generation capacity supporting the facility.
Mahesh Kolli, Group President and Joint Managing Director of AM Green, stated that the agreement indicated an increasing demand for competitively priced green molecules from India and the Kakinada project’s strategic significance in advancing the decarbonisation goals of Japan and the maritime sector. Irtiza Sayyed, JERA’s Senior Managing Executive Officer and CEO of JERA Global Energy Solutions, described the agreement as a move towards a complete lower-carbon value chain for Japan.
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For AM Green, the agreement is one of its initial delivered-basis supply contracts in the Asian market and signifies a step towards directly supplying green fuels to Japan. For JERA, sourcing from India would enhance its planned low-carbon ammonia portfolio with renewable green ammonia, increasing supply diversity and enabling end users to align supplies with their decarbonisation goals.
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The forthcoming significant milestone outlined in the agreement is the scheduled commissioning of AM Green’s Kakinada facility in 2028-29. The infrastructure for receiving, storing, and distributing near the Hekinan station, along with the planned ammonia bunkering operation, will be essential for transitioning the agreement from supply commitment to maritime fuel deliveries.