Coal India, AM Green signs MoU for 4500 MW green energy contract

Coal India Ltd (CIL) has announced plans to supply 4500 MW of carbon-free energy to AM Green Ammonia (India) Pvt Ltd's upcoming facilities. This energy will be generated through a combination of solar and wind power, with capacities across India.

CIL, in a BSE filing shared on Thursday, said the solar power capacity is expected to range from 2500 MW to 3000 MW, while wind power will account for 1500 MW to 2000 MW. The total investment for these projects is estimated at Rs 25,000 crore. Potential sites for wind projects will be explored in southern states, with solar plants in sunny states like Gujarat and Rajasthan.

A formal non-binding memorandum of understanding (MoU) was signed on May 7 between CIL and AM Green for the long-term supply of renewable energy. AM Green will integrate these renewable sources with pumped hydro storage to ensure a steady supply of green energy.

"While coal remains our mainstay in meeting India’s expanding energy needs in the near term, our plans include a proactive role in building a greener and more sustainable future. This is in consonance with our commitment to become the country’s integrated energy provider," stated CIL Chairman PM Prasad.

The founders of Greenko, a leading energy transition solutions provider, are behind AM Green. They aim to produce 5 million tonnes of green ammonia annually by 2030, equating to around 1 million tonnes of green hydrogen.

Mahesh Kolli, Founder of the Hyderabad-based Greenko Group & AM Green, commented, "We are delighted to partner with CIL on one of the world’s largest carbon-free, renewable energy supply contracts. We aim to become one of the most cost-competitive producers of green hydrogen, green ammonia, and other green molecules in the world."

On the earnings front, the state-run firm posted a 12 per cent year-on-year (YoY) in its profit for the January-March 2025 quarter. During the three months period, profit after tax (PAT) came at Rs 9,592.53 crore as against Rs 8,530.39 crore in the corresponding period last year. CIL's revenue from operations, however, slipped 1.02 per cent to Rs 37,824.54 crore in Q4 FY25 from Rs 38,213.48 crore in the year-ago period.

Shares of CIL settled 0.36 per cent lower at Rs 385.20.