Coal India Ltd., traditionally known for its coal mining operations, is making a significant shift towards renewable energy. The company has announced plans to invest approximately ₹25,000 crore (about $3 billion) to develop 4.5 gigawatts (GW) of solar and wind energy capacity. This initiative aims to support the production of green ammonia, a key component in sustainable industrial processes.
Strategic Partnership with AM Green Ammonia
The renewable energy generated will be supplied to AM Green Ammonia (India), a company backed by the founders of Greenko Group. AM Green plans to establish a 5 million tonnes per annum (MTPA) green ammonia production facility, with the first phase expected to commence operations in 2025. The project is part of India’s broader strategy to become a global leader in green ammonia production, leveraging its low-cost renewable energy resources. (Outlook Business)
Dual Approach: Expanding Coal Capacity While Promoting Renewables
Despite this significant investment in renewable energy, Coal India continues to expand its coal-fired power generation capacity. The company is involved in projects to increase coal-based power generation by 80 GW by 2031–32, aiming to meet the growing electricity demand in the country. This dual approach reflects the challenges of balancing energy security with the transition to sustainable energy sources.(Wikipedia)
Implications for India’s Energy Landscape
This move by Coal India underscores a significant shift in India’s energy sector, where traditional fossil fuel companies are increasingly investing in renewable energy. The collaboration with AM Green Ammonia aligns with India’s National Green Hydrogen Mission, which aims to produce green hydrogen at competitive costs. By 2030, India aims to produce 5 million tonnes of green ammonia annually, positioning itself as a key player in the global green energy market.
This development marks a pivotal step in India’s journey towards a more sustainable and diversified energy future.
