In a dramatic shift away from fossil fuels, Coal India Limited (CIL), the world’s largest coal miner, is partnering with clean energy firm AM Green to build a huge renewable energy complex aimed at producing green hydrogen and ammonia. The ₹250 billion ($2.92 billion) project could significantly change India’s energy future and position the country as a key global supplier of clean fuel, reports Hydrogen Fuel News.
The plan involves building a hybrid renewable energy facility combining 2.5 to 3 gigawatts (GW) of solar power with up to 2 GW of wind energy. These energy sources will be supported by a pumped hydro storage system, allowing the project to supply steady electricity even when the sun isn’t shining or the wind isn’t blowing.
This reliable clean power will run hydrogen production units that split water into hydrogen and oxygen. The hydrogen will then be used to produce ammonia through the well-known Haber-Bosch process. The project aims to generate around 1.8 million metric tons of green ammonia per year, enough to serve both India’s domestic market and growing international demand.
The project is expected to start in 2024 and grow in stages through 2030. Potential sites for solar power include sunny regions like Rajasthan and Gujarat, while the windy coastlines of Tamil Nadu are being considered for wind generation. The pumped hydro systems will store excess energy by using it to pump water uphill. That water is later released to flow downward through turbines when energy is needed.
For CIL, a company founded in 1975 and long associated with India’s coal dominance, this project represents a major shift. It’s being driven in part by India’s National Green Hydrogen Mission, launched in 2023 with $2.3 billion in funding to promote clean fuels.
The transition could reduce coal use by the equivalent of 50 million tonnes annually. It also creates an opportunity to retrain more than 150,000 coal workers for roles in clean energy—potentially turning a major employment challenge into a strength for India’s energy transition.
Beyond domestic goals, India is also looking outward. The country aims to become a key exporter of green ammonia, especially to countries like Japan and others in Southeast Asia that are ramping up clean fuel imports. AM Green is supported by major global investors, including Singapore’s GIC and Japan’s ORIX, and could play a central role in linking India’s hydrogen supply to overseas buyers.
If successful, the project could also help cut India’s liquefied natural gas (LNG) import bills by as much as 12%, reducing exposure to global fuel price swings.
The scale of the project brings serious challenges. Along with the high cost, the process will require about 9 billion liters of purified water every year—no small amount in a country where water scarcity is a growing concern. There are also plans to use a captive power model, meaning the project will generate its own electricity rather than rely on the national grid. That could help manage costs but adds technical complexity.
Land use is another issue. Building a project of this size will require vast areas, which may trigger opposition from local communities or environmental groups. And while retraining efforts are underway, moving such a large workforce from coal to clean energy won’t be easy or quick.
This isn’t just another renewable energy plan. It marks the first time a major coal producer is making a serious investment in hydrogen. As India pushes toward its 2030 goal of 500 GW of non-fossil energy, this project could help set the pace—and provide a model for others.
Coal India and AM Green aren’t experimenting. They’re committing serious resources in a high-stakes effort to reshape the energy landscape. If it works, this project could place India at the center of the global green hydrogen economy—and show the world that even the biggest fossil fuel companies can lead the clean energy transition.
