**Coal India Ltd Signs Major Renewable Energy Agreement for Green Ammonia Production**
Coal India Ltd (CIL) is making significant strides in diversifying its operations in response to the global energy transition. The state-owned coal mining giant has entered into a memorandum of understanding (MoU) to supply 4,500MW of renewable energy to AM Green, a company backed by the founders of Greenko, for its green ammonia production facilities. This agreement is touted as one of the largest renewable energy contracts globally.
The formal non-binding MoU, which focuses on the long-term supply and sourcing of solar and wind energy, was signed on May 7. To fulfill this ambitious contract, CIL plans to invest approximately ₹25,000 crore in developing the necessary capacities. The solar power component is expected to range between 2,500MW and 3,000MW, while wind energy will contribute between 1,500MW and 2,000MW. Potential sites for wind projects are being explored in southern states, with solar plants planned for sun-rich regions like Gujarat and Rajasthan.
AM Green intends to integrate the renewable energy supplied by CIL with pumped hydro storage systems to ensure a consistent supply of green energy to its facilities. P.M. Prasad, Chairman and Managing Director of Coal India Ltd, emphasized that while coal will continue to play a crucial role in meeting India’s immediate energy demands, the company is committed to fostering a greener and more sustainable future as part of its vision to become an integrated energy provider.
AM Green aims to produce 5 million tonnes per annum (mtpa) of green ammonia by 2030, which is equivalent to about 1 mtpa of green hydrogen. This production goal represents a significant portion of India’s target for green hydrogen under the National Green Hydrogen Mission. Anil Chalamalasetty, founder of the Hyderabad-based Greenko Group and AM Green, expressed enthusiasm about the partnership with CIL, highlighting their ambition to become a leading, cost-competitive producer of green hydrogen, green ammonia, and other sustainable energy solutions.
Established as a new energy transition platform, AM Green focuses on producing sustainable aviation fuel, green ammonia, green hydrogen, green chemicals, and biofuels, while also forming technology partnerships through its subsidiaries. Additionally, its minerals division, AMG Metals & Minerals, has partnered with global mining leader Rio Tinto to develop the world’s largest renewable-powered aluminum facility in India, with an investment of around $6 billion.
Despite the current momentum in coal production and usage due to rising electricity demand, the long-term outlook suggests a shift towards new energy sources. In recent years, CIL has actively pursued diversification and a transition towards cleaner fuels, aligning with global sustainability goals.
**FAQ**
**What is the significance of the MoU between Coal India Ltd and AM Green?**
The MoU represents a major step in renewable energy collaboration, aiming to supply 4,500MW of renewable power for green ammonia production, marking one of the largest contracts of its kind globally.
