Andhra Pradesh CM launches Rs 13,000 crore green fuel project in Kakinada

Andhra Pradesh Chief Minister N Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan on Saturday laid the foundation stone for a green ammonia and green hydrogen plant in Kakinada district.

The two leaders also unveiled a pylon marking the fixing of machinery at the project, which entails an investment of Rs 13,000 crore and will have an annual production capacity of 1.5 million metric tonnes per annum (MMTPA).

“Chief Minister Chandrababu Naidu and Deputy CM Pawan Kalyan laid the foundation for Kakinada AM Green’s green ammonia and green hydrogen complex,” an official release said.

Addressing the foundation meeting, Naidu said Andhra Pradesh would emerge as a green energy hub, with Kakinada developing into a green hydrogen valley.

“Andhra Pradesh is going to emerge as (a) green energy hub and Kakinada green hydrogen valley. The future is for knowledge economy and AP (Andhra Pradesh) is (the) best place (for) innovation and wealth creation,” he said.

He appealed to young entrepreneurs to dream big and said the state government would support them in achieving their goals. Naidu added that the government has ushered in the Clean and Green Energy Policy 2024.

According to the chief minister, production of 1.5 million tonnes of green ammonia will commence from June 2027, with exports planned to Germany.

Referring to Prime Minister Narendra Modi’s target of producing 500 GW of green energy, Naidu said Andhra Pradesh would aim to contribute 160 MW towards this goal.

Stating that the state government is giving top priority to renewable energy, including solar, wind and pumped storage power generation, he said Kakinada would become a destination for green hydrogen and green ammonia.

Naidu also said that a drone ambulance will be inaugurated this year and drone taxis will become a reality within one year. He added that the state government is setting up a space city and satellite launches will take place from Hope Island near Kakinada.

Unlike grey and blue ammonia, which are produced using coal, oil and natural gas, green ammonia is environment-friendly and involves no carbon emissions.

The plant, spread over 500 acres of land near Kakinada Port, is expected to start production by the end of 2027. A local grey ammonia plant is being redeveloped into the green ammonia facility.

The project is being developed with support from global partners including Malaysia-based Petronas, Singapore-based GIC and UAE-based ADIA.

With the potential to create 8,000 jobs, the AM Green project is expected to integrate Andhra Pradesh into the global green energy value chain, an earlier official release said.

According to the state government, the Kakinada facility represents one of the largest clean energy investments made in India and is expected to create high-skill employment during operations while supporting allied industries such as renewables, logistics, storage and port services.

For the first time in the country’s history, green energy molecules produced domestically will be exported to global markets including Germany, Japan and Singapore, positioning India and Andhra Pradesh as clean energy exporters, the release added.

The project will be developed in phases, starting with 0.5 MTPA by 2027, increasing to 1 MTPA in 2028 and reaching 1.5 MTPA by 2030.