The proposed facility will strengthen Thoothukudi’s position as an emerging green ammonia export hub and expand India’s ambitions to become a major supplier of low-carbon fuels to global shipping and industrial markets

Indian green energy developer AM Green has signed a memorandum of understanding (MoU) with V.O. Chidambaranar (VOC) Port in Thoothukudi, Tamil Nadu, to develop a renewable ammonia production facility with a planned capacity of one million tonnes per year.

The proposed project is expected to significantly enhance the strategic importance of the southern Indian deepwater port, positioning it as a key export hub for green ammonia and other low-carbon fuels. The facility will produce renewable ammonia using electricity generated from solar and wind resources, targeting international demand from the shipping industry and industrial consumers seeking to decarbonise their operations.

Thoothukudi has emerged as an important node in India’s green hydrogen and ammonia strategy. The port is one of three locations identified by the Government of India as pilot ammonia bunkering hubs under the National Green Hydrogen Mission, reflecting its potential to support the development of a domestic and export-oriented green fuel ecosystem.

The agreement marks the latest expansion of AM Green’s growing presence in India’s emerging green ammonia infrastructure sector. Earlier, the company reached a final investment decision for a green ammonia project in Kakinada, Andhra Pradesh, and entered into a port agreement at the same location to strengthen its export capabilities.

By extending its footprint to the southern coast, AM Green is seeking to capitalise on the region’s abundant renewable energy resources and well-established maritime infrastructure. Industry observers note that the combination of strong solar and wind potential, proximity to international shipping routes and access to deepwater port facilities could provide favourable economics for large-scale green ammonia production.

The latest announcement also adds to the rapidly expanding pipeline of green ammonia projects being planned across India. The sector has gained momentum following competitive auctions conducted by the Solar Energy Corporation of India (SECI) under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, which have resulted in long-term supply contracts at prices significantly below prevailing global benchmarks.

India has identified green hydrogen and its derivatives, including green ammonia, as critical components of its energy transition strategy and as potential export industries capable of supplying low-carbon fuels to global markets. The development of production and export infrastructure at ports such as Thoothukudi is expected to play a pivotal role in enabling the country to establish itself as a competitive supplier in the emerging international market for green fuels.

The proposed Thoothukudi facility underscores growing investor confidence in India’s renewable ammonia sector and highlights the increasing importance of integrated production and export infrastructure in supporting the country’s long-term green hydrogen ambitions.