JERA and AM Green ink green ammonia supply deal for bunkering

Japan’s power generation company JERA and AM Green Ammonia (India) (AM Green) on Tuesday (27 October) jointly announced that it has entered into a Binding Heads of Agreement (HoA) with AM Green regarding the long-term supply of green ammonia produced in India.

Under the HoA, JERA and AM Green have agreed upon the terms of supply of approximately 70,000 metric tonnes (mt) of green ammonia annually over five years with potential extension of term for additional supply from AM Green’s production facility in Kakinada, Andhra Pradesh, India, to Japan. 

“This marks one of the first large-scale green ammonia based bunkering initiatives globally,” the companies said. 

Green ammonia will be produced at AM Green’s Kakinada facility in Andhra Pradesh, India, planned to be commissioned by 2028/29. The facility will be supported by AM Green’s innovative round-the-clock renewable energy architecture, reinforced by pumped-hydro storage, powered by advanced alkaline electrolysis technology ensuring the product meets internationally recognised low-carbon standards and is benchmarked against the European market requirements.

The green ammonia is intended to be supplied through receiving, storage and distribution facilities being developed adjacent to JERA’s Hekinan Thermal Power Station in Aichi Prefecture, Japan. 

Through these facilities, the green ammonia would primarily be supplied to a business venture jointly to be established by Kawasaki Kisen Kaisha (“K” Line)  and Nippon Yusen Kabushiki Kaisha (NYK Line), which plans to utilise an ammonia bunkering vessel to supply fuel to ammonia-fuelled car carriers.

This agreement advances the end-to-end low-carbon ammonia value chain JERA has been building across production, transportation, storage and utilisation. It adds an additional source of supply and would extend the use of ammonia by JERA beyond power generation to maritime fuel, which will lead to the development of the infrastructure needed for broader ammonia utilisation across Japan’s industrial and commercial sectors.

The long-term procurement of green ammonia from India would add renewable-based green ammonia to JERA’s planned supply of low-carbon ammonia portfolio, further strengthening supply security and resilience that allows end customers to match supply to their decarbonisation needs.

The agreement marked one of AM Green’s first delivered-basis supply contracts in the Asian market and a milestone for the company as it pioneers direct delivery of green fuels to Japan. 

Irtiza Sayyed, JERA’s Senior Managing Executive Officer and JERA Global Energy Solutions CEO, said: “This agreement is an important step in advancing a practical end-to-end lower carbon value chain for Japan, anchored by our power generation business and serving a broader range of industries. 

“Through our group structure, we combine JERA’s power generation and infrastructure platform in Japan with JERA Global Energy Solutions’ global supply capabilities. This allows us to connect diversified sources of ammonia with customer needs in Japan, contributing to Japan’s decarbonisation goals.”

Mahesh Kolli, Group President, and Joint Managing Director of AM Green, said: “Our partnership with JERA marks another important milestone in AM Green’s journey to become a leading global supplier of renewable ammonia. This agreement reflects the growing demand for competitively priced green molecules from India and reinforces the strategic role of our Kakinada project in supporting Japan’s and maritime industry’s decarbonisation ambitions. 

“By combining renewable energy, large-scale energy storage and advanced green ammonia production, we are building a reliable and scalable supply platform for international markets. We look forward to working closely with JERA to advance this partnership and contribute to the development of a resilient global green ammonia value chain.”

Photo credit: JERA
Published: 29 October, 2026