Japanese utility Jera has signed a binding agreement with India's AM Green for the supply of around 70,000 t/yr of renewable ammonia from the developer's Kakinada project over an initial five-year period.
The ammonia will be supplied from AM Green's 1mn t/yr Kakinada facility in Andhra Pradesh, which the firm expects to commission in 2028-29. The agreement includes the option to extend the contract term and increase supply volumes.
Jera plans to receive the ammonia through facilities being developed at its Hekinan thermal power plant in Aichi prefecture before supplying it to a joint venture being established by Japanese shipping firms NYK Line and Kline.
The agreement follows an announcement by Jera, NYK Line, Kline and four Japanese shipbuilders earlier today that they will develop four ammonia-fuelled car carriers and an ammonia bunkering vessel by 2030. Jera intends to use ammonia supplied from Kakinada to support the bunkering venture, it said.
The deal provides another offtake outlet for AM Green's Kakinada project, which is being developed in two phases of 500,000 t/yr each. The developer said earlier this month that it expects 80-90pc of the project's planned capacity to be covered by binding agreements by the end of this year.
AM Green recently secured a $100mn financing package from the Asian Development Bank (ADB) and Japan International Cooperation Agency-backed Leading Asia's Private Infrastructure Fund 2 for the Kakinada project. Kakinada remains its priority project as it reassesses the sequencing of other planned ammonia developments in India, the company told Argus on 19 October.
ADB project documents previously indicated that additional offtake agreements were expected with Japanese firms including Jera, Mitsui and Marubeni. Today's announcement makes Jera the first of those companies to publicly conclude a supply agreement.
AM Green already has an agreement to supply up to 500,000 t/yr of renewable ammonia to Germany's Uniper, while part of Kakinada's second-phase output has been awarded under Germany's H2Global programme.
The project reached final investment decision in August 2024 and construction of its first phase started in January 2026. AM Green has said the first phase remains on track for commissioning in 2028, despite later dates included in financing documents prepared for lenders.
