Hyderabad: AM Green has signed a memorandum of understanding with VO Chidambaranar Port Authority (VOCPA) to develop VOC Port in Tuticorin as a green ammonia production and marine bunkering hub, with an initial bunkering capacity of up to 200,000 tonnes a year targeted by 2029-30 at an investment of Rs 2,000 crore.
The project could have the potential to expand bunkering capacity to 500,000 tonnes a year by 2035, depending on demand for low-carbon marine fuels, said AM Green, which was founded by the promoters of Hyderabad-based Greenko Group.
The agreement pairs AM Green’s planned green hydrogen and ammonia production projects with the port’s existing liquid ammonia handling capability and its designation as a national Green Hydrogen Hub under the Ministry of Ports, Shipping and Waterways, it said.
The two companies will assess pilot bunkering operations and infrastructure needed to supply green ammonia to ships in line with international safety and operating practices.
The partnership will also support AM Green’s proposed 1-million-tonne-a-year green ammonia plant near the port, involving estimated investment of Rs 15,000 crore. VOCPA will facilitate the project, for which AM Green says it has completed a significant part of land acquisition. AM Green said the production complex could enable a further Rs 35,000 crore worth of renewable power investment and forms part of its plan to develop more than 4 million tonnes of green ammonia capacity across India by 2030.
Gautam Reddy Kumbam, chief executive of AM Green, said Tuticorin offered a gateway to global shipping lanes. VOCPA Chairman Susanta Kumar Nath said the port would support infrastructure for green ammonia bunkering and export.
