In a significant move towards clean energy transition, Coal India Limited (CIL) has signed a non-binding Memorandum of Understanding (MoU) with AM Green Ammonia (India) Private Limited, marking one of the world’s largest renewable energy contracts.
As per the agreement signed on May 7, CIL will supply 4500 MW of carbon-free energy in a phased manner to AM Green’s upcoming green ammonia facilities across India.
The renewable power will be sourced from a pan-India portfolio of solar and wind energy projects, with an estimated total investment of ₹25,000 crore. Of the total planned capacity, solar energy will contribute 2500–3000 MW, while wind energy will add 1500–2000 MW. CIL aims to develop solar projects in sun-rich states like Gujarat and Rajasthan, and wind projects in the southern states known for their strong wind potential.
This large-scale renewable energy capacity will be integrated with pumped hydro storage systems by AM Green to ensure a steady and reliable supply of green power to its ammonia production facilities.
This collaboration aligns with India’s National Green Hydrogen Mission and the broader net-zero emissions goal. The initiative represents a key step in decarbonising industrial sectors, particularly the production of green ammonia and green hydrogen.
“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” said P M Prasad, CIL’s Chairman.
AM Green, promoted by the founders of Greenko Group, targets the production of 5 million tonnes per annum (MTPA) of green ammonia by 2030, which equates to 1 MTPA of green hydrogen. This figure represents 20% of India’s total target under the National Green Hydrogen Mission.
Mahesh Kolli, Founder of the Hyderabad based Greenko Group & AM Green, said, “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”.
Also Read: Coal India Announces Final Dividend of ₹5.15 Per Share for FY25: A Look at Its Dividend History!
The MoU between Coal India and AM Green represents a bold stride in India’s clean energy journey. As CIL looks to diversify its energy portfolio and AM Green scales up green ammonia production, this partnership sets the stage for large-scale industrial decarbonisation and strengthens India's position in the global green energy market.
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Published on: May 9, 2025, 12:26 PM IST
Nikitha Devi
Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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