Coal India Signs MoU with AM Green for Renewable Power Supply

Coal India Limited (CIL) signed a non-binding Memorandum of Understanding (MoU) with AM Green Ammonia (India) Private Limited on May 7, 2025. The agreement was executed in Kolkata.

As of 9:22 AM on May 8, 2025, Coal India share price was trading at ₹390.80, a 1.96% up, the stock is down 9.40% over the past six months and 17.28% over the past year.

Power Supply for Green Ammonia Project

The MoU outlines CIL’s intent to supply renewable power to AM Green’s green ammonia production facility. The plant is proposed to be located in Kandla, Gujarat. However, the agreement also allows for the supply to other facilities if required.

The power will be sourced from Coal India’s renewable energy projects, which collectively have a planned capacity of up to 4.5 gigawatts. The agreement does not specify how much of this capacity will be allocated to AM Green but confirms the use of this portfolio for power supply purposes.

Nature of the MoU

The MoU is non-binding. It serves as an initial step towards a formal arrangement and does not include details like pricing, project timelines, or power purchase agreements. These elements will be subject to further discussions and agreements between the parties involved.

Read more: Coal India Share Price in Focus on May 8; Reports 12% Profit Growth in Q4 FY25

Green Ammonia Production

Green ammonia is produced using hydrogen generated from renewable sources. The Kandla facility aims to use renewable electricity in its operations, making energy supply a key component of the project.

Company Details

Coal India Limited is a public sector undertaking under the Ministry of Coal. AM Green Ammonia (India) Private Limited is a company focused on ammonia production using renewable resources.

Further agreements or project updates are expected as the companies move beyond the MoU stage. Specific implementation timelines have not yet been announced.

Conclusion

The MoU between Coal India and AM Green is an initial step focused on renewable power supply for a proposed ammonia plant. The agreement involves up to 4.5 GW of potential capacity and is currently at a preliminary stage with no binding terms.

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