The Asian Development Bank (ADB) and the Government of Japan have agreed to finance AM Green Ammonia (India) to convert an existing ammonia and urea plant into one of the largest renewable-energy-powered green ammonia facilities globally. This project will replace natural gas-based production with renewable energy, enabling the plant to produce about 1.1 million tonnes of green ammonia annually. The initiative aims to reduce emissions from ammonia manufacturing, support cleaner industrial production, and boost India’s emerging green ammonia export sector.
The financing includes a $100 million loan from Asia’s Private Infrastructure Fund 2, funded by the Japan International Cooperation Agency (JICA) and administered by ADB. This investment is the first project under the Action for Creating Energy Security for Long-term Resilience (ACCEL), launched by ADB and Japan in May to address rising energy prices and enhance energy system resilience in Asia and the Pacific.
ADB President Masato Kanda noted the project’s role in transforming ammonia production by replacing fossil fuels with renewable energy to enable large-scale, lower-emission manufacturing. Japan’s Finance Minister Satsuki Katayama emphasized the importance of strengthening Asia’s energy supply chains through Japan’s broader POWERR Asia initiative.
ACCEL employs a two-pronged strategy: providing short-term liquidity support to businesses, especially small and medium-sized enterprises, while promoting a long-term transition to diversified and sustainable energy systems. Japan supports this effort through ADB-administered trust funds and partnerships with development finance institutions, including JICA and the Japan Bank for International Cooperation (JBIC).
The AM Green Ammonia project merges cleaner industrial production with efforts to enhance regional energy security. By repurposing existing infrastructure for renewable-powered manufacturing, it is expected to create new market opportunities, generate employment, and expand India’s green ammonia production capacity.
