India Exchanges Green Ammonia Agreements To Boost Fertiliser Security

06 Apr 2026 CW Team

Fertilisers companies have entered long-term agreements with green ammonia producers to secure supply at fixed prices for a tenure of 10 years, providing demand assurance and investment security. The Solar Energy Corporation of India conducted competitive bidding under the SIGHT programme and discovered prices ranging from Rs 49.75 to Rs 64.74 per kg, substantially lower than international benchmarks of around Rs 110 per kg. SECI has allocated a total capacity of 724,000 t per annum linked to 13 fertiliser units nationwide.

The adoption of green ammonia is expected to reduce import dependence and conserve foreign exchange while supporting more stable domestic production of phosphatic and potassic fertilisers including DAP and NPK variants. India currently produces about 16.5–17 million (mn) tonne (t) of P&K fertilisers but a significant portion relies on imported ammonia, and recent geopolitical disruption has driven volatility in availability and price. A stable domestic supply of green ammonia should also attract investments and additional manufacturing units over time.

The National Green Hydrogen Mission has an outlay of Rs 197.44 bn and targets five million (mn) t of green hydrogen per annum by 2030 to position India as a global hub for green hydrogen and derivatives. The Department of Fertilisers, in coordination with the Ministry of New and Renewable Energy, SECI and manufacturers, is implementing measures to build a low-carbon fertiliser sector and to scale green hydrogen integration. The transition is projected to generate foreign exchange savings of about $2.5 bn over 10 years and to create employment while enhancing long-term resilience in the sector.

The Department of Fertilisers, Government of India, finalised the exchange of Green Ammonia Purchase Agreements and Green Ammonia Supply Agreements for 11 projects under the National Green Hydrogen Mission at New Delhi in the presence of union ministers and senior officials. The agreements are intended to operationalise green hydrogen and green ammonia projects and integrate green derivatives into the fertiliser value chain. The Union Minister described the exchange as a historic step towards sustainable fertiliser production, energy security and self-reliance. Fertilisers companies have entered long-term agreements with green ammonia producers to secure supply at fixed prices for a tenure of 10 years, providing demand assurance and investment security. The Solar Energy Corporation of India conducted competitive bidding under the SIGHT programme and discovered prices ranging from Rs 49.75 to Rs 64.74 per kg, substantially lower than international benchmarks of around Rs 110 per kg. SECI has allocated a total capacity of 724,000 t per annum linked to 13 fertiliser units nationwide. The adoption of green ammonia is expected to reduce import dependence and conserve foreign exchange while supporting more stable domestic production of phosphatic and potassic fertilisers including DAP and NPK variants. India currently produces about 16.5–17 million (mn) tonne (t) of P&K fertilisers but a significant portion relies on imported ammonia, and recent geopolitical disruption has driven volatility in availability and price. A stable domestic supply of green ammonia should also attract investments and additional manufacturing units over time. The National Green Hydrogen Mission has an outlay of Rs 197.44 bn and targets five million (mn) t of green hydrogen per annum by 2030 to position India as a global hub for green hydrogen and derivatives. The Department of Fertilisers, in coordination with the Ministry of New and Renewable Energy, SECI and manufacturers, is implementing measures to build a low-carbon fertiliser sector and to scale green hydrogen integration. The transition is projected to generate foreign exchange savings of about $2.5 bn over 10 years and to create employment while enhancing long-term resilience in the sector.

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