Coal India To Supply 4.5 GW Renewable Energy For Green Ammonia

India’s state-owned coal producer, Coal India Limited (CIL), will supply 4.5 GW of carbon-free energy for green ammonia production under what it claims to be one of the world’s largest renewable energy contracts.  

Under a non-binding memorandum of understanding (MoU) signed, CIL will supply this capacity through a combination of solar and wind projects located across the country to AM Green Ammonia (India) Private Limited.  

Out of the 4.5 GW, solar power’s share will be 2.5 GW to 3.0 GW, while wind energy will account for 1.5 GW to 2.0 GW. Solar projects will be mainly located in sunny states like Gujarat and Rajasthan, whereas it will explore the southern states for potential wind project sites. 

CIL expects to incur an investment of around INR 250 billion ($3.0 billion) to bring this capacity online. 

“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 CIL Chairman PM Prasad. 

Greenko-backed AM Green will integrate solar and wind energy resources to be supplied by the CIL with pumped hydro storage to ensure a steady supply of green energy to its facilities as it aims to produce 5 million tons per annum (MTPA) of green ammonia by 2030. 

This equates to approximately 1 MTPA of green hydrogen, representing 20% of the national green hydrogen production target of 5 MTPA under the National Green Hydrogen Mission, and 10% of Europe’s import target of 10 MTPA by 2030. 

“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,” said Greenko Group and AM Green Founder Anil Chalamalasetty. 

Previously, AM Green signed an MoU for 4.5 GW of solar and wind energy development with SJVN Limited subsidiary SGEL, following its offtake agreement with Germany’s Uniper for 250,000 tons/annum green ammonia (see SJVN Bags 4.5 GW Renewable Energy Supply Deal).