In a landmark development in India’s energy landscape, Coal India Limited (CIL), the country’s largest coal producer, has signed a non-binding Memorandum of Understanding (MoU) with AM Green Ammonia (India) to supply an enormous 4,500 megawatts (MW) of renewable energy. This ambitious partnership is poised to transform the industrial use of green power and stands as one of the largest renewable energy supply contracts globally.
A Shift Toward Sustainable Energy Models
The MoU, signed on May 7, 2025, marks a strategic pivot for Coal India, traditionally known for its coal mining operations. The company now aims to emerge as a comprehensive energy provider, aligning with the government of India’s long-term carbon neutrality goals and commitments under global climate accords. The renewable energy will be used to power AM Green’s upcoming green ammonia facilities — an environmentally friendly alternative to conventional ammonia produced from fossil fuels.
Green ammonia, which is produced using hydrogen derived from renewable electricity (rather than natural gas), is expected to play a vital role in global decarbonization efforts, especially in sectors like agriculture, shipping, and heavy industry.
Breakdown of the Renewable Energy Mix
According to a statement from CIL, the renewable energy capacity will be sourced from both solar and wind power projects. The distribution is expected to comprise between 2,500 MW to 3,000 MW of solar power and 1,500 MW to 2,000 MW of wind power, depending on site-specific generation potential and availability.
The estimated investment outlay for the project is around ₹25,000 crore, reflecting the scale and seriousness of the initiative. CIL has already started identifying potential sites for establishing the renewable energy infrastructure. While solar power plants are likely to be located in Gujarat or Rajasthan, given their abundant sunshine and solar potential, wind power projects are expected to come up in southern India, where wind conditions are ideal.
Integrated Energy Storage with Pumped Hydro
A standout feature of the project is AM Green’s plan to integrate the renewable energy sources with pumped hydro storage systems. This storage technology uses surplus renewable energy to pump water to higher elevations and releases it through turbines when energy demand spikes or when the sun isn’t shining or the wind isn’t blowing. The integration of pumped hydro will help mitigate the intermittency challenges associated with renewables and ensure a stable, continuous power supply for green ammonia production.
This approach underscores the strategic depth of the MoU — not just generating green power, but ensuring it is firm, dispatchable, and grid-compliant, which is critical for industrial processes that cannot afford power fluctuations.
Coal India’s Commitment to a Greener Future
CIL Chairman PM Prasad commented on the significance of this initiative, saying, “While coal remains the mainstay in meeting India’s expanding energy needs, our plans include a proactive role in building a greener, more sustainable future. This aligns with our commitment to becoming the country’s integrated energy provider.” ([The Times of India][1])
This statement reflects a broader trend in India’s energy policy — to embrace a balanced, hybrid model where legacy fossil fuel assets are complemented and, eventually, replaced by renewables and low-carbon alternatives.
National and Global Relevance
The agreement arrives at a crucial time. India has committed to achieving net-zero carbon emissions by 2070 and aims to meet 50% of its electricity needs through renewable energy sources by 2030. Large-scale renewable projects like this are essential to hitting those benchmarks.
On a global level, green ammonia is gaining traction as a low-carbon fuel that can be used directly in shipping or converted back to hydrogen. It is easier to transport and store than hydrogen gas, making it a practical solution for decarbonizing difficult-to-abate sectors.
Through this MoU, AM Green Ammonia is positioning itself to be a leader in this emerging sector, while Coal India expands its relevance beyond coal mining and enters the clean energy space with a bold and strategic move.
Roadmap and Implementation Challenges
While the MoU is currently non-binding, the scale and specificity of the energy requirements indicate a high likelihood of formalization. Detailed feasibility studies, regulatory clearances, power purchase agreements, and land acquisition for solar and wind farms will follow.
Furthermore, the integration with pumped hydro — while technologically sound — will require navigating environmental clearances and topographical constraints. Both companies are expected to collaborate closely with state and central government authorities to fast-track the necessary approvals.
Economic and Employment Impact
With an investment footprint of ₹25,000 crore, the project is expected to generate thousands of jobs during the construction and operational phases. It will also open up new avenues for supply chain development in areas like solar panel manufacturing, wind turbine components, transmission infrastructure, and energy storage systems.
Coal India’s partnership with AM Green Ammonia to supply 4,500 MW of renewable energy is more than a business deal — it’s a signal of India’s evolving energy narrative. As the country balances economic growth with climate obligations, such collaborations reflect the critical convergence of energy security, sustainability, and innovation.
By venturing beyond coal and embracing clean energy at scale, CIL is not only redefining its corporate identity but also reinforcing India’s commitment to a cleaner, greener future.
DO FOLLOW:
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Coal India Limited – Official Website
https://www.coalindia.in
(For updates, press releases, and official documentation about renewable projects and MoUs) -
Ministry of Power, Government of India – Renewable Energy Initiatives
https://powermin.gov.in/en/content/renewable-energy
(Outlines national goals for green power expansion and clean energy transition) -
Ministry of New and Renewable Energy (MNRE)
https://mnre.gov.in
(India’s central portal for solar, wind, and storage policies, including green hydrogen/ammonia missions) -
National Green Hydrogen Mission – MNRE Portal
https://mnre.gov.in/national-green-hydrogen-mission
(Official framework for India’s green hydrogen and green ammonia roadmap) -
AM Green (Greenko Group’s Green Ammonia Division)
https://www.greenkogroup.com
(Parent company’s official page — often shares updates on AM Green projects) -
Invest India – Green Hydrogen and Renewable Energy Investment Opportunities
https://www.investindia.gov.in/sector/renewable-energy
(Govt. of India’s investment promotion site with detailed industry insights)
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