One of the world’s largest green ammonia plants secures financing

The Asian Development Bank (ADB) and the Government of Japan have signed financing agreements to support the construction of one of the world’s largest green ammonia plants in India. The project is being developed by AM Green Ammonia (India) Pvt. Ltd. It involves establishing large-scale ammonia production using renewable energy instead of fossil fuels. This will mark the first investment under the joint ADB-Japan initiative, Action for Creating Energy Security for Long-term Resilience (ACCEL).

The project will convert a former ammonia and urea plant that operated on natural gas into a green ammonia production facility powered by renewable energy. The plant will have a production capacity of approximately 1.1 mln tons per year. The project is expected to support the development of a new export industry in India and reduce emissions from ammonia production. Ammonia is a key raw material for nitrogen fertilizers and is widely used in industrial applications.

Project financing includes a $100 mln loan from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), financed by the Japan International Cooperation Agency (JICA) and administered by ADB. According to ADB President Masato Kanda, switching from fossil fuels to renewable energy will allow India to produce ammonia with significantly lower emissions. The scale of the new facility could help transform the industry and create new jobs.

The ACCEL initiative was launched in May 2026 to strengthen energy security across the Asia-Pacific region amid rising energy prices. The program focuses on two main areas: providing short-term financial support to businesses, particularly small and medium-sized enterprises, and supporting long-term investments in energy diversification and more resilient energy systems. Japan supports the initiative through dedicated funds and cooperation with public financial institutions, including JICA and the Japan Bank for International Cooperation (JBIC).

Japan’s Finance Minister Satsuki Katayama emphasized that strengthening the resilience of energy supply chains is an important priority for Asian countries. The construction of the green ammonia plant in India is expected to become an example of the transition toward more diversified energy sources. For the global fertilizer industry, the project offers opportunities to reduce ammonia production’s dependence on natural gas, whose price and availability significantly affect the production costs of nitrogen fertilizers.

Tags: India, Japan, fertilisers, nitrogen fertilizers, green ammonia