Coal India to Supply 4,500 MW Renewable Energy for Green Ammonia Projects
| 2025-05-09
Representative image
Coal India Limited and AM Green sign MoU to develop 4,500 MW renewable energy for green ammonia production, supporting India's net-zero goals.
Coal India Limited (CIL), the world's largest coal producer, has taken a significant step towards diversifying its energy portfolio by partnering with AM Green to supply 4,500 megawatts (MW) of renewable energy. The energy will power AM Green’s forthcoming green ammonia manufacturing facilities, with the collaboration set to become one of the largest such renewable energy contracts globally.
The non-binding memorandum of understanding (MoU), signed on 7 May 2025, outlines a long-term strategy to deliver carbon-free electricity through a mix of solar and wind energy. The supply will be implemented in phases across multiple Indian states.
According to CIL, the solar capacity will range between 2,500 MW and 3,000 MW, while wind energy will contribute between 1,500 MW and 2,000 MW. The overall project is estimated to require an investment of approximately ₹25,000 crore (around US$3 billion).
Potential wind project sites are being considered in southern India, while solar power infrastructure will likely be developed in high-irradiance states such as Gujarat and Rajasthan. AM Green plans to integrate the renewable energy with pumped hydro storage systems to ensure continuous power availability at its green ammonia plants.
“This is in consonance with our commitment to become the country's integrated energy provider,” said P M Prasad, Chairman of Coal India Limited. “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.”
The partnership underscores India’s strategic push towards clean energy production and supports the objectives of the National Green Hydrogen Mission, which aims to make India a global hub for green hydrogen and related technologies.
AM Green, promoted by the founders of Greenko Group—a leading renewable energy developer in India—is targeting an annual production capacity of 5 million tonnes of green ammonia by 2030. This figure equates to roughly 1 million tonnes of green hydrogen per year, representing 20% of India’s national production target and about 10% of the European Union’s projected import requirement by the same year.
“We are delighted to partner with CIL on one of the world’s largest carbon-free, renewable energy supply contracts,” said Anil Chalamalasetty, Founder of AM Green and the Greenko Group. “We aim to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world.”
The agreement was signed by Sudarsan Bora, General Manager (Electrical & Mechanical) of CIL, and Shatanshu Agrawal, Senior Vice President of Business Development at AM Green. Also present were CIL Chairman P M Prasad, Director (Marketing) Mukesh Choudhary, and Anil Kumar, General Manager (Materials Management and Solar).
Context:
India has pledged to achieve net-zero carbon emissions by 2070 and aims to install 500 gigawatts of non-fossil fuel capacity by 2030. Green hydrogen and ammonia are seen as critical to decarbonising hard-to-abate industrial sectors such as fertilisers, refineries, and steel.
Green ammonia—produced by combining nitrogen with hydrogen generated from renewable electricity—is gaining traction as a carbon-neutral fuel for power generation and shipping, as well as a sustainable fertiliser feedstock.
The CIL-AM Green pact demonstrates a growing trend of public-private partnerships in India’s evolving energy landscape. As a predominantly coal-based enterprise, Coal India’s entry into large-scale renewable energy supply marks a shift in strategy that could influence other state-owned enterprises to follow suit.
The non-binding memorandum of understanding (MoU), signed on 7 May 2025, outlines a long-term strategy to deliver carbon-free electricity through a mix of solar and wind energy. The supply will be implemented in phases across multiple Indian states.
According to CIL, the solar capacity will range between 2,500 MW and 3,000 MW, while wind energy will contribute between 1,500 MW and 2,000 MW. The overall project is estimated to require an investment of approximately ₹25,000 crore (around US$3 billion).
Potential wind project sites are being considered in southern India, while solar power infrastructure will likely be developed in high-irradiance states such as Gujarat and Rajasthan. AM Green plans to integrate the renewable energy with pumped hydro storage systems to ensure continuous power availability at its green ammonia plants.
“This is in consonance with our commitment to become the country's integrated energy provider,” said P M Prasad, Chairman of Coal India Limited. “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.”
The partnership underscores India’s strategic push towards clean energy production and supports the objectives of the National Green Hydrogen Mission, which aims to make India a global hub for green hydrogen and related technologies.
AM Green, promoted by the founders of Greenko Group—a leading renewable energy developer in India—is targeting an annual production capacity of 5 million tonnes of green ammonia by 2030. This figure equates to roughly 1 million tonnes of green hydrogen per year, representing 20% of India’s national production target and about 10% of the European Union’s projected import requirement by the same year.
“We are delighted to partner with CIL on one of the world’s largest carbon-free, renewable energy supply contracts,” said Anil Chalamalasetty, Founder of AM Green and the Greenko Group. “We aim to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world.”
The agreement was signed by Sudarsan Bora, General Manager (Electrical & Mechanical) of CIL, and Shatanshu Agrawal, Senior Vice President of Business Development at AM Green. Also present were CIL Chairman P M Prasad, Director (Marketing) Mukesh Choudhary, and Anil Kumar, General Manager (Materials Management and Solar).
Context:
India has pledged to achieve net-zero carbon emissions by 2070 and aims to install 500 gigawatts of non-fossil fuel capacity by 2030. Green hydrogen and ammonia are seen as critical to decarbonising hard-to-abate industrial sectors such as fertilisers, refineries, and steel.
Green ammonia—produced by combining nitrogen with hydrogen generated from renewable electricity—is gaining traction as a carbon-neutral fuel for power generation and shipping, as well as a sustainable fertiliser feedstock.
The CIL-AM Green pact demonstrates a growing trend of public-private partnerships in India’s evolving energy landscape. As a predominantly coal-based enterprise, Coal India’s entry into large-scale renewable energy supply marks a shift in strategy that could influence other state-owned enterprises to follow suit.
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