New Delhi: The Asian Development Bank (ADB) and the Government of Japan have signed financing agreements with AM Green Ammonia (India) Private Limited to support the development of one of the world’s largest renewable energy-powered ammonia plants in India.
The project marks the first investment under the Action for Creating Energy Security for Long-term Resilience (ACCEL), an initiative aimed at strengthening energy security and diversifying energy sources across Asia.
The project will convert a former ammonia and urea plant from natural gas-based production to renewable-powered green ammonia manufacturing, with an annual production capacity of around 1.1 million tonnes. It is expected to support the development of India’s green ammonia export industry while reducing emissions from the production of a key ingredient used in fertilisers and other industrial applications.
The financing package includes a $100 million loan from the Leading Asia’s Private Infrastructure Fund 2, financed by the Japan International Cooperation Agency (JICA) and administered by ADB.
ADB President Masato Kanda said the project would demonstrate how renewable energy could replace fossil fuels in ammonia production, significantly lowering emissions while enabling production at an industrial scale.
He added that the investment, as the first under ACCEL, highlighted how ADB and Japan could translate energy security objectives into practical investments that support new markets and employment.
Japan’s Finance Minister Satsuki Katayama said strengthening the resilience of Asia’s energy supply chains was essential. She noted that Japan was advancing its POWERR Asia initiative, including through ACCEL, and would continue working with ADB to diversify energy sources and strengthen the region’s economic resilience.