India Exchanges Green Ammonia Agreements To Boost Fertiliser Security
POWER & RENEWABLE ENERGY

India Exchanges Green Ammonia Agreements To Boost Fertiliser Security

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.

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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code