JERA and India-based AM Green Ammonia have signed a binding Heads of Agreement for the long-term supply of green ammonia, marking a step towards decarbonising Japan’s energy and maritime sectors.

Under the agreement, AM Green will supply approximately 70,000 tonnes of green ammonia annually to JERA for five years, with the potential to extend the term and increase supply.

The ammonia will be produced at AM Green’s Kakinada facility in Andhra Pradesh, India, which is scheduled to begin operations in 2028/29.

The agreement supports JERA’s development of an integrated low-carbon ammonia supply chain spanning production, transportation, storage and end-use.

The ammonia is expected to be delivered through receiving, storage and distribution facilities being developed next to JERA’s Hekinan Thermal Power Station in Aichi Prefecture, Japan.

The fuel will primarily serve a planned joint venture between Japanese shipping companies Kawasaki Kisen Kaisha and Nippon Yusen Kabushiki Kaisha.

The venture intends to use an ammonia bunkering vessel to supply fuel to ammonia-powered car carriers, representing one of the first large-scale green ammonia bunkering initiatives globally.

AM Green’s Kakinada facility will use advanced alkaline electrolysis technology supported by round-the-clock renewable electricity, backed by pumped-hydro energy storage.

The green ammonia is expected to meet internationally recognised low-carbon standards benchmarked against European market requirements.

For JERA, the agreement adds renewable-based green ammonia to its planned low-carbon fuel portfolio, strengthening supply security and enabling customers to meet their decarbonisation targets.

It will also expand the company’s use of ammonia beyond power generation into maritime applications, supporting the development of infrastructure for wider industrial and commercial use across Japan.

For AM Green, the deal represents one of its first delivered-basis supply contracts in Asia and a milestone in supplying green fuels directly to Japan.

The agreement also reinforces India’s ambitions to become a major global supplier of renewable-based fuels, positioning AM Green as a potential long-term partner in Japan’s and the wider Asian region’s energy transition.

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." -OGN/TradeArabia News Service