AM Green Ammonia (India) and JERA Co. jointly announced on Tuesday that they have entered into a binding Heads of Agreement (HoA) for long-term supply of green ammonia produced in India.
JERA and AM Green have agreed to supply of roughly 70,000 tonnes of green ammonia annually over five years, with potential extension of term for additional supply.
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.
Green ammonia would primarily be supplied to a business venture jointly to be established by Kawasaki Kisen Kaisha and Nippon Yusen Kabushiki Kaisha, which plans to utilise an ammonia bunkering vessel to supply fuel to ammonia-fueled car carriers.
This marks one of the first large scale green ammonia based bunkering initiatives globally. The green ammonia meets internationally recognised low-carbon standards and is benchmarked against the European market requirements.
Green ammonia will be produced at AM Green’s Kakinada facility in Andhra Pradesh, planned to be commissioned by 2028-29. The facility will be supported by AM Green’s innovative round-the-clock renewable energy architecture, reinforced by pumped-hydro storage, powered by advanced alkaline electrolysis technology.
Mahesh Kolli, Group President and Joint Managing Director of AM Green, said “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’s and maritime industry’s decarbonisation ambitions.”
The agreement marks one of AM Green’s first delivered-basis supply contracts in the Asian market and a milestone for the company as it pioneers direct delivery of green fuels to Japan.
Irtiza Sayyed, JERA’s 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.”
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 JERA’s planned supply of low-carbon ammonia portfolio further strengthening supply security and resilience that allows end customers to match supply to their decarbonisation needs.
Published on October 27, 2026
