India plans to convert an existing natural gas-fuelled ammonia and urea plant to renewable power. The project aims to produce around 1.1 million tonnes of green ammonia annually. According to Asian Power, AM Green Ammonia (India) Private Limited will lead the project to reduce emissions from conventional ammonia production.
Green Ammonia Project Secures International Financing
The project has received financial backing from the Asian Development Bank (ADB) and Japan. According to the report, it marks their first joint investment under the Action for Creating Energy Security for Long-term Resilience (ACCEL) initiative.
The financing includes a $100 million loan from Leading Asia’s Private Infrastructure Fund 2. The Japan International Cooperation Agency finances the fund, while ADB administers it.
ACCEL Initiative Supports Energy Security
ADB and the Government of Japan launched the ACCEL initiative in May 2026. It aims to help businesses and countries across the Asia-Pacific region address high energy costs, fuel-price volatility and supply constraints.
The initiative combines short-term corporate liquidity support, particularly for small and medium-sized enterprises, with long-term investment in diversified and sustainable energy systems.
Green Ammonia Supports India’s Energy Transition
The project aligns with India’s broader efforts to expand renewable energy and reduce dependence on fossil fuels. India aims to achieve 500 GW of non-fossil-fuel-based electricity capacity by 2030, with solar and wind power expected to play a major role.
Shifting ammonia production to renewable power could also help reduce emissions across fertiliser manufacturing and industrial supply chains.
Project Implementation Will Shape Outcomes
The proposed project marks a step towards cleaner industrial production in India. However, its impact will depend on effective project implementation, the integration of renewable electricity and the achievement of its targeted production capacity.
The initiative also highlights the role of international development finance in supporting energy security and industrial decarbonisation.
