India is set to strengthen its position in the emerging green fuels market, with the Asian Development Bank (ADB) and the Government of Japan backing a major green ammonia plant capable of producing around 1.1 million tonnes annually.
The two partners have signed financing agreements with AM Green Ammonia (India) Private Limited to convert a former natural gas-fuelled ammonia and urea facility into a renewable energy-powered plant, marking the first investment under the Action for Creating Energy Security for Long-term Resilience (ACCEL) initiative.
The project aims to cut emissions from ammonia production while creating the foundation for a new export industry in India. Ammonia is a key ingredient in fertiliser manufacturing and is widely used across industrial sectors.
“Ammonia is used every day to produce the fertilizer that helps feed the world,” said ADB President Masato Kanda. “This project changes how we make it. By using renewable energy instead of fossil fuels, India can produce it with far lower emissions and at a scale that can help reshape this industry. As the first investment under ACCEL, it also shows how ADB and Japan can turn energy security into practical investments in new markets and jobs.”
The financing package includes a $100 million loan from the Leading Asia's Private Infrastructure Fund 2, financed by the Japan International Cooperation Agency (JICA) and administered by ADB.
The investment comes as Asian economies seek to diversify energy sources, strengthen supply chains and reduce exposure to energy price volatility. By shifting ammonia production away from natural gas and towards renewable energy, the project is designed to support both cleaner industrial production and long-term energy resilience.
Japan’s Finance Minister Satsuki Katayama welcomed the agreement, describing stronger regional energy supply chains as a priority.
"Strengthening resilience of Asia’s energy supply chains is essential. Japan is advancing POWERR Asia, including through ACCEL, and I welcome the first joint project under ACCEL," said Japan’s Finance Minister Satsuki Katayama. "Working closely with ADB, Japan will continue to support the diversification of energy sources, which will strengthen economic resilience across Asia."
Launched in May 2026 by ADB and Japan, ACCEL is designed to help countries and businesses across Asia and the Pacific cope with rising energy prices and build more resilient energy systems.
The initiative has two main priorities: providing short-term liquidity support to businesses, particularly small and medium-sized enterprises, and accelerating the transition towards more diversified and sustainable energy systems over the medium to long term.
Japan is supporting the initiative through trust funds financed by the country and administered by ADB, alongside cooperation with Japanese development finance institutions, including JICA and the Japan Bank for International Cooperation (JBIC).
The green ammonia project places India at the centre of the initiative’s first investment, linking industrial decarbonisation with energy security and the development of new export opportunities.
