CM: AP will be home to ‘Green Hydrogen Valley’

Kakinada: Andhra Pradesh will soon be home to a ‘Green Hydrogen Valley, Chief Minister Nara Chandrababu Naidu declared on Saturday, while stressing the need to balance development with environmental protection.

The Chief Minister made the declaration while laying the foundation stone for the AM Green Hydrogen and Green Ammonia project at Kakinada, along with Deputy Chief Minister Pawan Kalyan.

The proposed Green Hydrogen Valley is a strategic initiative envisioned to create integrated ecosystems for producing, researching, and applying green hydrogen, leveraging renewable energy to achieve carbon neutrality.

The Chief Minister emphasized, “Our immediate goal is to achieve progress without compromising on environmental protection, and all our plans are being framed with this balance in mind.”

Referring to climate challenges, Naidu said, “Rising sea levels and frequent natural disasters are causing severe coastal erosion. Environmental protection is no longer optional; it is essential.”

Citing Prime Minister Narendra Modi’s vision, he said, “The Prime Minister has set a national target of producing 500 gigawatts of green energy. In line with that vision, Andhra Pradesh has fixed a target of generating 160 gigawatts of green energy.”

“With solar power, consumers have now become producers, transforming the energy ecosystem,” he remarked.

Highlighting the state’s endowments and geographical advantages, Naidu said, “Endowed with a 1,000-km-long coastline and with 20 ports coming up, Andhra Pradesh is ideally suited for solar, wind, hydro, pumped storage power, and green hydrogen and green ammonia production.” The AM Green plant will produce “green hydrogen, green ammonia, ethanol, and several green molecules.”

The Chief Minister said, “The Andhra Pradesh Clean and Green Integrated Energy Policy 2024 has been recognised as one of the best policies in the country.” Industrial approvals are being granted at a rapid pace. “Green ammonia will play a key role in promoting natural farming,” he said.

On the investments front, Naidu remarked: “25% of the total foreign investments coming into India are flowing to AP, which reflects the confidence investors have in the leadership.”

“Speed of doing business will drive development, generate wealth, and strengthen welfare,” he observed.

Referring to power sector reforms, he said, “We are working to reduce the power purchase burden by Rs 1.19 per unit. Already, the burden on consumers has been reduced by 29 paise per unit.” Efforts are underway to reduce transmission losses as well. “Quantum computing services will be launched in Amaravati within the next six months,” he reiterated.

Congratulating the promoters of hydrogen and green ammonia project, the Chief Minister said, “This is the world’s largest project, and we are proud that it is coming up in Andhra Pradesh.” He pointed out that approval was granted last year and added, “By June 2027, production of 1.5 million tonnes will begin.” Green ammonia produced in Kakinada will be exported to Germany, marking a major milestone, he added.

Officials said the project, being set up by AM Green of the Greenko Group over 495 acres, involves an investment of about Rs 18,000 crore. The project is being developed with the support of Petronas of Malaysia, GIC of Singapore, and ADIA of the UAE. Around 8,000 jobs are expected during construction, with additional opportunities in logistics, storage, and port services after completion.

The green ammonia complex will have an annual capacity of 1.5 million tonnes and 1,950 MW of electrolyser capacity, with plans to expand further by 2030, making it the largest such complex in the country. Addressing the gathering, Deputy Chief Minister Pawan Kalyan said, “Administrative policies must remain stable even when governments and parties change.” He alleged that investors were harassed earlier and said, “The coalition government is committed to building investor confidence at every step.”

Describing the project as historic, he said, “This marks the first clean energy export agreement between India and European countries, and Andhra Pradesh is at the centre of this transformation.”

“Even reducing one degree in global temperature can bring a strong positive change,” he said, while linking global warming to coastal erosion in Uppada.

BJP state unit president P V N Madhav, AM Greenko representatives, Ministers, MPs, MLAs, and senior officials attended the programme.