The Asian Development Bank and the government of Japan have signed financing agreements to support construction of AM Green Ammonia’s renewable-powered green ammonia plant in Kakinada, Andhra Pradesh, with the financing package including a $100 million loan.
The project is being developed by Hyderabad-based AM Green Ammonia (India) Private Ltd, established by the founders of Greenko Group. According to the Asian Development Bank, the facility is expected to produce about 1.1 million tonnes of green ammonia annually, making it one of the world’s largest renewable-powered ammonia plants.
The loan will come from the Leading Asia’s Private Infrastructure Fund 2, which is financed by the Japan International Cooperation Agency and administered by ADB. The financing agreement marks the first investment under the Action for Creating Energy Security for Long-term Resilience, or ACCEL, initiative launched by ADB and Japan in May 2026.
The Kakinada project will convert a former ammonia and urea facility from natural gas-based production to renewable-powered green ammonia production. The planned conversion places an existing industrial site at the centre of a new clean-energy manufacturing project, while retaining the facility’s role in fertiliser and industrial supply chains.
Ammonia is widely used in fertiliser production. The project is intended to support cleaner fertiliser and industrial supply chains and help develop a new export industry in India. Its proposed annual output also gives the Kakinada facility a significant role in the scale-up of renewable-powered ammonia production.
“Ammonia is used every day to produce the fertilizer that helps feed the world,” ADB president Masato Kanda said. “This project changes how we make it. By using renewable energy instead of fossil fuels, India can produce it with far lower emissions and at a scale that can help reshape this industry.”
Kanda said the project demonstrated how ADB and Japan could convert energy-security objectives into investments capable of creating new markets and jobs. Japan’s finance minister Satsuki Katayama said strengthening Asia’s energy supply chains was essential and described the Kakinada financing as the first joint investment under ACCEL.
“Working closely with ADB, Japan will continue to support the diversification of energy sources, which will strengthen economic resilience across Asia,” Katayama said. The agreements place the Kakinada plant within a wider regional effort to diversify energy sources and strengthen supply-chain resilience.
