AM Green to Supply Green Ammonia to JERA for Five Years

On 27 October 2026, JERA Co., Inc. and AM Green Ammonia (India) Private Limited announced a Binding Heads of Agreement for green ammonia supplies from India to Japan. AM Green plans to deliver about 70,000 tonnes annually for five years, with an option to extend the term and supply additional volumes.

Supply Chain and Intended Uses

The ammonia is planned to come from AM Green’s Kakinada facility in Andhra Pradesh, which is scheduled for commissioning in 2028–29. The product is intended primarily for a joint venture planned 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.

Ammonia receiving, storage and distribution facilities are being developed next to JERA’s Hekinan Thermal Power Station in Aichi Prefecture, Japan. Bunkering is the process of supplying fuel to a vessel. The planned chain links production in India with storage and use in Japan.

Green Ammonia: Production and Properties

Ammonia, with the chemical formula NH3, contains nitrogen and hydrogen. Green ammonia is produced using hydrogen made through water electrolysis powered by renewable electricity; nitrogen is separated from air, and the gases are combined through the Haber-Bosch process. The product contains no carbon, although ammonia combustion can produce nitrogen oxides that require control.

Ammonia is used in fertilisers and can also serve as a hydrogen carrier and fuel. In maritime transport, bunkering infrastructure and vessels designed for ammonia use are required to handle and distribute it. The JERA agreement covers supply for both power-related facilities and a proposed maritime fuel chain.

Project Finance and Other Contracts

In October 2026, AM Green secured a US$100 million loan from Leading Asia’s Private Infrastructure Fund 2. The Japan International Cooperation Agency finances the fund, which is administered by the Asian Development Bank, and the loan is intended to support the Kakinada plant. In September 2026, AM Green was named the sole winner of the Asian lot in the H2Global auction, securing a 10-year contract worth at least €585 million to supply renewable ammonia to Germany and wider Europe, with first deliveries expected in 2029.

Important Facts for Exams

• Ammonia has the chemical formula NH3 and consists of nitrogen and hydrogen.
• The Haber-Bosch process combines nitrogen and hydrogen to produce ammonia.
• Water electrolysis uses electricity to separate hydrogen from water.
• JERA’s Hekinan Thermal Power Station is in Aichi Prefecture, Japan.

The Kakinada facility is located in Andhra Pradesh, and its planned commissioning is in 2028–29. The JERA supply agreement sets an annual volume of approximately 70,000 tonnes for five years.