Coal India Plans to Supply Carbon-Free Energy for Green Ammonia Facilities
Key Ideas
- Coal India Limited aims to supply 4,500 MW of carbon-free energy to green ammonia facilities of AM Green through a mix of solar and wind power.
- The initiative aligns with India's goal of achieving a cleaner energy mix and transitioning towards net-zero emissions.
- AM Green plans to produce 5 million tons per annum of green ammonia by 2030, contributing significantly to India's green hydrogen production target.
- The partnership between CIL and AM Green represents one of the world's largest carbon-free renewable energy supply contracts, aiming for cost-competitive green hydrogen production.
Coal India Limited (CIL) has announced its plan to supply 4,500 MW of carbon-free energy to the green ammonia facilities of AM Green in a phased manner. The energy supply will come from a combination of solar and wind sources, with capacities to be established across India. This move is in line with India's national objective of transitioning to a cleaner energy mix and working towards achieving net-zero emissions. A memorandum of understanding was signed between CIL and AM Green for the long-term supply and sourcing of renewable energy.
CIL's solar power capacity is expected to range from 2500 MW to 3000 MW, while wind power is projected to be between 1500 MW and 2000 MW, with an estimated total investment of around Rs. 25,000 Crores. The focus for wind projects will be on southern states, and for solar plants, sunny states like Gujarat and Rajasthan will be explored.
AM Green, associated with the founders of Greenko, a leading energy transition solutions provider in India, aims to produce 5 million tons per annum of green ammonia by 2030. This production is equivalent to approximately 1 million tons per annum of green hydrogen, contributing significantly to India's target for green hydrogen production under the National Green Hydrogen Mission.
The Chairman of CIL, P M Prasad, highlighted the company's commitment to a greener and more sustainable future, alongside meeting the country's energy demands with coal in the short term. The collaboration between CIL and AM Green is set to be one of the largest carbon-free renewable energy contracts globally, aiming to be a competitive producer of green hydrogen and other green molecules.
AM Green, led by the Greenko Group, envisions becoming a cost-competitive producer of green hydrogen, green ammonia, and other green molecules, emphasizing sustainability and renewable energy in its operations.