AM Green Ammonia and Japan’s JERA have signed a binding Heads of Agreement for the long-term supply of about 70,000 tonnes of green ammonia a year from India to Japan, creating a new supply link between an upcoming facility in Andhra Pradesh and maritime decarbonisation infrastructure in Aichi Prefecture.
The agreement covers a five-year supply period, with the possibility of extending the term for additional volumes. The green ammonia is planned to be produced at AM Green’s Kakinada facility, which is scheduled for commissioning in 2028-29.
The ammonia will be supplied through receiving, storage and distribution facilities being developed next to JERA’s Hekinan Thermal Power Station in Aichi. It is intended primarily for a business venture to be jointly established by Kawasaki Kisen Kaisha and Nippon Yusen Kabushiki Kaisha, which plans to use an ammonia bunkering vessel to supply fuel to ammonia-powered car carriers.
The companies described the initiative as one of the first large-scale green ammonia bunkering projects globally. The arrangement would extend JERA’s planned use of ammonia beyond power generation and support the development of infrastructure for ammonia handling and utilisation across Japan’s industrial and commercial sectors.
AM Green said the product would meet internationally recognised low-carbon standards and be benchmarked against European market requirements. The Kakinada project is planned around a round-the-clock renewable energy system supported by pumped-hydro storage and advanced alkaline electrolysis technology. The supplied material does not provide the project’s total investment, production capacity or the renewable generation capacity backing the facility.
Mahesh Kolli, Group President and Joint Managing Director of AM Green, said the agreement reflected rising demand for competitively priced green molecules from India and the strategic role of the Kakinada project in supporting Japan’s and the maritime industry’s decarbonisation ambitions. Irtiza Sayyed, JERA’s Senior Managing Executive Officer and Chief Executive Officer of JERA Global Energy Solutions, called the agreement a step towards an end-to-end lower-carbon value chain for Japan.
For AM Green, the arrangement is among its first delivered-basis supply contracts in the Asian market and marks a move towards directly delivering green fuels to Japan. For JERA, procurement from India would add renewable-based green ammonia to its planned low-carbon ammonia portfolio, strengthening supply diversity and allowing end users to match supplies with their decarbonisation requirements.
The next major milestone identified in the agreement is the planned commissioning of AM Green’s Kakinada facility in 2028-29. The receiving, storage and distribution infrastructure near the Hekinan station and the planned ammonia bunkering operation will be central to moving the agreement from supply commitment to maritime fuel deliveries.
