ADB Signs $100 Million Loan to Support India's 1.1 Million-Ton Green Ammonia Project

en.Wedoany.com Reported - On October 15, the Asian Development Bank (ADB) and the Government of Japan announced the signing of a financing agreement with AM Green Ammonia (India) Private Limited to support the construction of a green ammonia project with an annual capacity of approximately 1.1 million tons in Kakinada, Andhra Pradesh, India. The financing includes a $100 million loan from the Asian Private Infrastructure Fund 2 (LEAP 2), funded by the Japan International Cooperation Agency and managed by ADB. The project is the first financing project under the ACCEL energy security investment mechanism jointly established by ADB and Japan.

The project involves retrofitting the existing natural gas-based ammonia and urea production facilities in Kakinada to build a green ammonia production system using hydrogen produced from renewable energy. The works will be implemented in two phases, each equipped with a production unit with an annual capacity of 547,500 tons of ammonia, for a total planned annual capacity of 1.095 million tons. The first phase also includes shared utility facilities serving both phases.

The production facilities will integrate renewable energy power supply, water electrolysis for hydrogen production, ammonia synthesis, product storage, and port export logistics systems. The first phase corresponds to approximately 640 MW of renewable energy-based hydrogen production equipment, with green hydrogen fed into the ammonia synthesis unit to produce ammonia for export. Phase I of the project has entered the construction stage. ADB project arrangements indicate that the first phase is scheduled for commissioning on March 31, 2029, and the second phase on March 31, 2030.

Product sales will target international markets. The project has signed an offtake contract with Germany's Uniper Global Commodities for 125,000 tons of green ammonia per year, and plans to advance long-term offtake arrangements for first-phase products with Japan's JERA, Mitsui & Co., and Marubeni. Implementation of the second phase will be linked to the conclusion of additional long-term product offtake agreements.

The Asian Development Bank approved financing for the project on September 9, 2026, and disclosed the signing of the financing agreement on October 15. The financing supports the construction of the Kakinada green ammonia plant already underway, with the latest capital milestone at this stage being the signing of the loan agreement.