Mumbai, Oct. 30 -- JERA and AM Green Ammonia have signed a binding Heads of Agreement for the supply of green ammonia produced in India for maritime decarbonisation in Japan. The agreement covers approximately 70,000 t of green ammonia annually for five years, with an option to extend the arrangement for additional supplies.
The ammonia is planned to be produced at AM Green's facility in Kakinada, Andhra Pradesh, which is scheduled for commissioning in 2028-29. The plant will use advanced alkaline electrolysis technology and round-the-clock renewable energy supported by pumped-hydro energy storage, providing a consistent supply of renewable-based ammonia for international markets.
The product will be received, stored and distributed through facilities being developed next to JERA's Hekinan Thermal Power Station in Aichi Prefecture, Japan. These facilities will support several applications, including maritime transportation and the distribution of ammonia fuel.
The supply is primarily intended for a business venture to be established by Kawasaki Kisen Kaisha and Nippon Yusen. The venture plans to use an ammonia bunkering vessel to deliver fuel to ammonia-powered car carriers, creating one of the first large-scale green ammonia bunkering projects globally and supporting wider adoption of lower-carbon fuels in shipping.
The agreement forms part of JERA's strategy to build an integrated low-carbon ammonia value chain spanning production, transport, storage and utilisation. It expands the company's ammonia activities beyond power generation into maritime fuel and may support broader industrial and commercial applications in Japan. The supply is expected to meet internationally recognised low-carbon standards and be benchmarked against European market requirements. Procurement from India will diversify JERA's planned portfolio, strengthen supply security and support customers' decarbonisation needs.
For AM Green, the agreement is among its first delivered-basis supply contracts in Asia. The company said the Kakinada project would support Japan's decarbonisation objectives, respond to maritime demand for green fuels and reinforce India's potential role as a global supplier of renewable ammonia.
Published by HT Digital Content Services with permission from Construction World.