JERA And AM Green Sign Five-Year Deal For 70,000 Tonnes Of Green Ammonia Annually

JERA Co., Inc. and AM Green Ammonia (India) Private Limited have signed a binding Heads of Agreement (HoA) for the long-term supply of green ammonia produced in India to support maritime decarbonisation in Japan. Under the agreement, the companies have agreed to supply approximately 70,000 tonnes of green ammonia annually for five years, with the possibility of extending the contract to accommodate additional supplies.

The green ammonia is planned to be produced at AM Green’s facility in Kakinada, Andhra Pradesh, which is scheduled to be commissioned by 2028–29. The facility will use advanced alkaline electrolysis technology and be supported by round-the-clock renewable energy, reinforced by pumped-hydro energy storage. This arrangement is intended to ensure a reliable supply of renewable-based ammonia for international markets.

The ammonia will be supplied through receiving, storage and distribution facilities being developed adjacent to JERA’s Hekinan Thermal Power Station in Aichi Prefecture, Japan. The infrastructure will support the handling and distribution of ammonia for various applications, including maritime transportation.

The supply is primarily intended for a business venture to be jointly established by Kawasaki Kisen Kaisha, Ltd. and Nippon Yusen Kabushiki Kaisha. The venture plans to use an ammonia bunkering vessel to deliver fuel to ammonia-powered car carriers. The initiative represents one of the first large-scale green ammonia bunkering projects globally and is expected to support the adoption of lower-carbon fuels in the shipping industry.

The agreement also advances JERA’s strategy to develop an integrated low-carbon ammonia value chain covering production, transportation, storage and utilisation. While the company has been developing ammonia applications for power generation, the partnership will expand its potential use into maritime fuel. The development could also contribute to wider ammonia utilisation across Japan’s industrial and commercial sectors.

The green ammonia supplied under the agreement is expected to meet internationally recognised low-carbon standards and be benchmarked against European market requirements. Procurement from India will diversify JERA’s planned low-carbon ammonia portfolio, strengthening supply security and helping meet customers’ decarbonisation requirements.

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. He highlighted the role of JERA’s power generation and infrastructure platform, alongside its global supply capabilities, in connecting diversified ammonia sources with domestic demand.

Mahesh Kolli, Group President and Joint Managing Director of AM Green, said the partnership marked an important milestone in the company’s ambition to become a leading global supplier of renewable ammonia. He added that the Kakinada project would support Japan’s decarbonisation objectives and growing demand for green fuels in the maritime sector.

The agreement marks one of AM Green’s first delivered-basis supply contracts in Asia, strengthening India’s position as a potential global supplier of green ammonia and supporting the development of international renewable fuel supply chains.