- Coal India signs Mou with AM Green to supply 4,500 MW of renewable energy for green ammonia production.
- The renewable energy will come from 2,500-3,000 MW of solar and 1,500-2,000 MW of wind, with a $3 billion investment.
- AM Green aims to produce 5 million tonnes of green ammonia annually by 2030, contributing 20% to India’s green hydrogen mission.
Coal India Limited (CIL) signed a memorandum of understanding (Mou) with AM Green to supply 4,500 MW of renewable energy for the company’s green ammonia production. The agreement, finalised on May 7, marks CIL’s shift from coal to cleaner energy sources.
The renewable energy will come from both solar and wind power. Solar capacity will range from 2,500 MW to 3,000 MW, and wind will contribute 1,500 MW to 2,000 MW. The project will require an investment of about INR 25,000 Crores, or $3 billion. Solar farms will increase in Gujarat and Rajasthan, which will have abundant sunlight. Wind farms will develop in southern India, which is known for its strong wind potential.
AM Green will receive the energy in phases. The company will integrate renewable power with pumped hydro storage to ensure a consistent energy supply to its industrial facilities.
AM Green, founded by the creators of Greenko Group, plans to produce 5 million tonnes of green ammonia annually by 2030. This amount equals around 1 million tonnes of green hydrogen per year. The company targets nearly 20% of India’s National Green Hydrogen Mission goal.
Sudarsan Bora, General Manager (Electrical & Mechanical) at CIL, and Shatanshu Agrawal, Senior Vice President of Business Development at AM Green, signed the Mou. P M Prasad, Chairman of CIL, and Anil Chalamalasetty, Founder of AM Green, attended the ceremony.
The agreement supports CIL’s broader strategy to move beyond coal. “While we continue to meet coal demand, we aim to diversify our energy mix,” said P M Prasad, Chairman of CIL. He emphasised the importance of building a sustainable energy future.
AM Green will use renewable energy to boost its capacity to produce green hydrogen and ammonia. The company plans to reduce large-scale production costs and increase efficiency in the green molecule market.
This deal marks a significant milestone for both companies as they collaborate to help India meet its renewable energy and green hydrogen targets. CIL’s renewable energy supply will power AM Green’s green ammonia production facilities. This collaboration will further support India’s transition to a low-carbon economy.
AM Green’s green ammonia production will drive substantial progress in India’s efforts to become a global leader in green hydrogen. With CIL’s support, the company is well-positioned to meet its ambitious production goals and contribute to the country’s sustainable energy future.