YamnaCo Limited has entered the frame with a proposed one million tonnes per annum (TPA) green ammonia project in Andhra Pradesh.
The memorandum of understanding (MoU), signed with the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), outlines a phased, grid-connected development near the strategically positioned port of Krishnapatnam.
While India has already laid out an aggressive National Green Hydrogen Mission—targeting 5 MTPA of green hydrogen production capacity by 2030—state-level initiatives like Andhra Pradesh’s reveal a competitive subnational push to capture early-mover advantages. YamnaCo’s project, estimated at ₹160 billion ($1.9 billion), is set to source renewable electricity from the Indian grid, echoing the broader challenge of achieving true “green” credentials in a system still heavily reliant on coal-fired power.
The facility’s location—proximate to Krishnapatnam Port—signals intent to streamline outbound ammonia logistics, particularly for export markets in Europe and East Asia. However, this geographic advantage raises questions about port infrastructure readiness, given the lack of clarity on cold storage, bunkering, or dedicated green fuel export terminals at Indian ports to date. Unlike Gujarat or Odisha, Andhra Pradesh has yet to disclose a detailed hydrogen port strategy.
Despite the project’s scale—1 MTPA would represent roughly 20% of India’s total 2030 green hydrogen target (when converted to hydrogen equivalent)—there is no public confirmation yet on electrolyzer partners, water sourcing strategies, or power purchase agreements. With grid-connected models, renewable purchase obligations (RPOs) and time-of-day clean energy availability will be critical to ensure both economic and environmental viability.
This MoU follows another major commitment by the Andhra Pradesh government in March 2025, when it partnered with Tata Power Renewable Energy Limited to develop up to 7 GW of solar, wind, and hybrid capacity in the state. The ₹490 billion ($5.8 billion) initiative could underpin future green hydrogen projects, though integration challenges—such as energy storage, curtailment risks, and land availability—remain unaddressed.
Crucially, YamnaCo’s initiative is expected to generate 5,500 direct and indirect jobs, a significant socio-economic lever for Andhra Pradesh. Yet, India’s green hydrogen policies do not currently mandate local employment or skills development metrics, raising the issue of long-term regional benefit-sharing in privately led hydrogen projects.
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