ADB and Japan arrange financing for Kakinada green ammonia facility
The Asian Development Bank and the Government of Japan signed financing agreements with AM Green Ammonia (India) for a 1.1 million tonne per year green ammonia plant in Kakinada, Andhra Pradesh. The package includes a $100 million loan from the Leading Asia's Private Infrastructure Fund 2, funded by JICA and managed by ADB. The project will repurpose an old natural gas-based ammonia and urea facility and will be built in two phases, each producing 547,500 tonnes annually.
The Kakinada project will turn an existing ammonia and urea site that once ran on natural gas into a plant powered by renewable energy. It is planned in two stages, each capable of making 547,500 tonnes of green ammonia per year, for a total of 1.1 million tonnes annually.
A $100 million loan from the Leading Asia’s Private Infrastructure Fund 2 supports the deal. The fund is backed by the Japan International Cooperation Agency and managed by ADB. It marks the initial financing for an ADB-Japan energy security effort begun in May 2026. In September 2026, ADB also agreed to advise Madhya Pradesh on three PPP renewable projects, potentially drawing $1 billion in private capital.
The Kakinada project may affect local workers and nearby communities as an older industrial site shifts to renewable-powered production. It could create construction and operations jobs, alter skill needs, and potentially reduce some emissions linked to ammonia manufacturing. Farmers and fertilizer supply chains might feel indirect effects depending on where the output goes. ADB’s advisory role in Madhya Pradesh may also shape how private capital enters renewable projects, with possible implications for ratepayers, landholders, and local economies.