Coal India signs pact with AM Green Ammonia for 4,500 MW clean power supply

New Delhi: State-owned Coal India Ltd (CIL) on Thursday said it has signed an agreement with AM Green Ammonia (India) Pvt Ltd to supply around 4,500 MW of green power to the latter's various ammonia facilities.

"Coal India Ltd (CIL), plans to supply 4,500 MW of carbon-free energy, in a phased manner, to upcoming green ammonia facilities of AM Green Ammonia (India) Pvt Ltd. While the solar power capacity would be to the tune of 2,500 MW to 3,000 MW, wind is expected to account between 1,500 MW and 2,000 MW at an estimated total outlay of around Rs 25,000 crores," the company said in a filing to BSE.

A pact for long-term supply and sourcing of green energy was inked on Wednesday between both companies.

This energy will be generated through a combination of solar and wind power, with capacities across India.

Potential sites for wind power projects will be explored in South India and for solar plants in sunny states like Gujarat and Rajasthan, the filing said.

"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. This is in consonance with our commitment to become the country’s integrated energy provider," CIL Chairman P M Prasad said.

AM Green will integrate the two renewable sources supplied by CIL with pumped hydro storage to ensure a steady supply of green energy to AM Green facilities.

AM Green promoted by the founders of Greenko, an energy transition solutions provider, is targeting to produce 5 million tons per annum (MTPA) of green ammonia by 2030. This equals approximately one MTPA of green hydrogen and represents a fifth of the country's target for green hydrogen production under the National Green Hydrogen Mission.

"We are delighted to partner with CIL on one of the world’s largest carbon-free, renewable energy supply contracts. We aim to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world," Founder of the Hyderabad-based Greenko Group & AM Green Mahesh Kolli said.

Coal India accounts for over 80 per cent of domestic coal output.