Indian state-owned coal company Coal India Limited (CIL) has signed a memorandum of understanding (MoU) with AM Green Ammonia to supply 4.5 GW of renewable energy for the production of green ammonia. The deal will be one of the world’s largest contracts in the renewable energy sector and will accelerate the development of green hydrogen in India.

Details of the agreement

According to the agreements, Coal India will supply AM Green with electricity from solar and wind power plants with a total capacity of 4.5 GW:

• 2.5n–3.0 GW — solar generation (the main capacities will be located in the sunny states of Gujarat and Rajasthan).
• 1.5–2.0 GW — wind energy (the projects will be located in the southern states of India).

CIL plans to invest around Rs 250 billion ($3 billion) to implement these projects.

Green Ammonia and Hydrogen: AM Green’s Ambitions

AM Green Ammonia (backed by Greenko Group) will use the generated energy in combination with pumped storage capacity to ensure stable production of green ammonia. The company aims to reach the following volumes by 2030:

• 5 million tonnes of green ammonia per year (equivalent to ~1 million tonnes of green hydrogen).
• This is 20% of India’s national target for green H₂ production under the National Green Hydrogen Mission.
• 10% of the EU’s target imports (the EU plans to purchase 10 million tonnes of green hydrogen by 2030).

The main production will be located in Andhra Pradesh, where AM Green has already taken the final investment decision (FID) for the construction of the plant in August 2023.

Coal India Strategy: From Coal to Green Energy

While coal remains the backbone of India’s energy mix, CIL is actively diversifying its business, aiming to become an “integrated energy supplier”. The company has already taken steps in this direction in the past:

• 2020 — announcement of investment in 3 GW of solar generation.
• 2021 — first solar power sale contract.
• March 2023 — the Indian government introduced the Renewable Generation Obligation (RGO), which requires coal-fired power plants to partially switch to renewable energy.

“While coal remains our backbone in the near term, we are actively involved in building a greener and more sustainable future,” said CIL Chairman Prasad.

AM Green: Expansion Plans

In addition to its partnership with Coal India, AM Green is developing other renewable energy projects. In October 2023, the company signed an MoU with GAIL India for the construction of 2.5 GW of hybrid (wind + solar) power plants.

“We intend to become one of the most competitive producers of green hydrogen and ammonia in the world,” said Anil Chalamalasetty, founder of Greenko Group and AM Green.

Conclusion: India is strengthening its position in global green energy

The deal between CIL and AM Green demonstrates two key trends:

1. Coal companies are actively engaging in the energy transition by investing in renewable energy.
2. India is betting on green hydrogen and ammonia, seeking to take a significant share of the global market.