India’s coal mining company Coal India Limited (CIL) and compatriot green hydrogen and ammonia producer AM Green have signed a formal non-binding memorandum of understanding (MoU) for the long-term supply and sourcing of renewable energy.
As disclosed, Coal India Limited (CIL) plans to supply 4500 MW of carbon-free energy, in a phased manner, through a combination of solar and wind, to the upcoming ammonia facilities of AM Green.
While the solar power capacity would be about 2500 MW to 3000 MW, wind is expected to account for between 1500 MW and 2000 MW, AM Green revealed, adding that it will integrate the two renewable sources supplied by CIL with pumped hydro storage to ensure a steady supply of green energy to its facilities.
P.M. Prasad, CIL’s Chairman, commented: “While coal remains our mainstay in meeting India’s expanding energy needs in the near term, our plans include a proactive role in building a greener and more sustainable future. This is in consonance with our commitment to become country’s integrated energy provider.”
Anil Chalamalasetty, Founder of Greenko Group & AM Green, stated: “We are delighted to partner with CIL on one of the world’s largest carbon-free, renewable energy supply contracts. We aim to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world.”
To note, AM Green targets to produce 5 million tons per annum (MTPA) of green ammonia by 2030. Reportedly, this equals approximately 1 MTPA of green hydrogen and represents a 5th of India’s target for green hydrogen production under the National Green Hydrogen Mission.
One of the company’s most notable projects involves the revamping of two existing ammonia facilities to enable the production of 1,500 metric tons per day (MTD) of carbon-free ammonia in Kakinada.
The new plant is set to have two 640 MW pressurized alkaline electrolyzers for green hydrogen production, air separation units for nitrogen, two trains of ammonia synthesis, ammonia storage, ammonia loading facility at the port, and offsite utilities.
The producer awarded an engineering, procurement services, construction management, and commissioning services (EPsCM) contract to Rely, a company dedicated to integrated green hydrogen and Power-to-X (PtX) solutions, and selected industrial equipment supplier Casale as its technology partner for the project.
According to AM Green, most of the produced ammonia will be exported to the European market. The final investment decision (FID) was reached in August 2024.