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Green Fuel Project Launched in Kakinada with ₹13,000-Crore Investment

Green Fuel Project Launched in Kakinada with ₹13,000-Crore Investment

Dantu Vijaya Lakshmi Prasanna
January 18, 2026

Andhra Pradesh Chief Minister N. Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan on Saturday laid the foundation stone for a Green Ammonia and Green Hydrogen plant in Kakinada district. The leaders unveiled the project pylon, signalling the start of machinery installation for the facility being developed with an investment of ₹13,000 crore and an annual capacity of 1.5 million metric tonnes.

The environmentally friendly project will produce green ammonia without carbon emissions, unlike grey and blue ammonia manufactured using coal, oil, and natural gas. The plant is coming up on nearly 500 acres near Kakinada Port, where an existing grey ammonia facility is being converted into a green ammonia plant as part of the initiative.

The project is being developed by AM Green with support from global partners including Malaysia-based Petronas , Singapore’s GIC , and UAE-based ADIA . It is expected to generate around 8,000 jobs and position Andhra Pradesh as a key player in the international green energy market.

For the first time in the country’s history, green energy molecules produced at the plant will be exported to countries such as Germany, Japan, and Singapore. The State government said this would help India and Andhra Pradesh gain recognition as clean energy exporters on the global stage. Production is scheduled to begin in 2027 with 0.5 million metric tonnes, rise to 1 million metric tonnes in 2028, and reach full capacity of 1.5 million metric tonnes by 2030.

Addressing the gathering, Mr. Naidu said it was a matter of pride that one of the world’s largest green hydrogen and green ammonia projects was being established in Andhra Pradesh. He said the project aligned with Prime Minister Narendra Modi ’s vision of producing 500 GW of green energy and added that the State had set a target of generating 160 GW. He expressed confidence that Andhra Pradesh would soon emerge as a Green Hydrogen Valley and a global hub for clean energy.

Deputy Chief Minister Pawan Kalyan said the coalition government was committed to creating a supportive and investor-friendly environment. He described the green ammonia project as a game-changer in environmental protection and a major milestone in India’s journey towards pollution-free energy. Several political leaders and senior officials were present at the programme.