Coal India Limited Signs Major Renewable Energy Deal with AM Green for Green Ammonia Production
Key Ideas
  • Coal India Limited plans to supply 4500 MW of carbon-free energy to AM Green Ammonia facilities through a mix of solar and wind projects, aligning with India's cleaner energy goals.
  • The agreement aims to produce 5 million tons of green ammonia annually by 2030, which includes a substantial target for green hydrogen under India's National Green Hydrogen Mission.
  • The company's financial performance in Q4 2024-25 saw a growth in Profit After Tax despite a slight decline in Revenue from Operations, maintaining a healthy dividend payout and market cap.
  • Coal India Ltd has shown significant stock growth, up by 13.2% from its 52-week low and delivering multibagger returns of 200% over 3 years, reflecting positive investor sentiment.
Coal India Limited (CIL) has entered into a significant renewable energy agreement with AM Green Ammonia (India) Private Limited to supply 4500 MW of carbon-free energy for green ammonia production. The deal involves setting up solar and wind projects across India to meet the power requirements of AM Green's facilities and contribute to a cleaner energy mix in line with India's net-zero emissions targets. The agreement, formalized through a memorandum of understanding, signifies a major step towards sustainable energy production in the country. AM Green, a venture backed by the founders of Greenko, aims to ramp up green ammonia production to 5 million tons per annum by 2030, with a substantial portion dedicated to green hydrogen in alignment with the country's renewable energy goals. The partnership marks a strategic move towards green energy adoption and supports India's National Green Hydrogen Mission. In its financial results for the fourth quarter of 2024-25, Coal India Ltd reported a strong growth in Profit After Tax despite a minor decrease in Revenue from Operations. The company maintained a robust dividend payout, reflecting stability and market confidence. Additionally, the company's stock performance has been impressive, showing a significant increase from its 52-week low and delivering substantial returns to investors over a three-year period, indicating positive sentiment towards the company's prospects.
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