YamnaCo wins Andhra Pradesh approval for $1B first phase of green ammonia project

YamnaCo has secured approval from the Andhra Pradesh state cabinet for the first phase of a planned green ammonia production facility near Krishnapatnam Port in southeastern India, advancing one of the region’s largest clean ammonia projects under development.

The first phase of the project will require an estimated investment of about $1 billion and is designed to produce 500,000 tonnes per year of green ammonia. YamnaCo ultimately plans to expand the facility to 1 million tonnes annually through a second phase, bringing the total projected investment to around $2 billion under a memorandum of understanding signed with the Andhra Pradesh government in July 2025.

The state government has allocated land for the project in Chillakur and Kota Mandal in Tirupati District, adjacent to Krishnapatnam Port, positioning the facility for both domestic supply and export markets. The project will also qualify for incentives under Andhra Pradesh’s Integrated Clean Energy Policy, including capital subsidies, tax incentives and grid connectivity support.

Abdelaziz Yatribi, chief executive of YamnaCo, said the approval marks “an important step for Yamna to build a globally diversified portfolio of clean energy assets.” The company said the project aligns with India’s National Green Hydrogen Mission, which targets annual production of 5 million tonnes of green hydrogen by 2030. A commissioning timeline for the first phase was not disclosed.

The project will now enter detailed development and implementation stages, including engineering studies, permitting and infrastructure planning. If completed as planned, the YamnaCo facility would rank among the largest green ammonia plants under active development in Asia.

India has emerged as a key market for green hydrogen and ammonia investment, with states including Andhra Pradesh, Gujarat, Rajasthan and Tamil Nadu competing to attract large-scale clean energy projects supported by renewable power resources and port infrastructure.

Green ammonia, produced using renewable-powered electrolysis rather than natural gas-based processes, is increasingly viewed as a pathway to decarbonize fertilizer production and maritime shipping fuel. Developers across India are advancing export-oriented projects as the government expands policy support and incentives for the hydrogen sector.

Source: ICIS