India explores roadmap for Green Urea production, plans procurement of 7.24 lakh MT green ammonia
New Delhi, June 26
The government is exploring a roadmap to make Green Urea production a reality in India, with plans to procure 7.24 lakh metric tonnes of Green Ammonia annually under the National Green Hydrogen Mission to support the country's clean energy transition.
The government in an official statement on Friday, stated that the Department of Fertilisers (DoF) recently issued an Invitation for Expression of Interest (EOI) for the establishment of Green Urea plants in India and held a high-level Pre-EOI meeting at Projects and Development India Limited (PDIL) headquarters in Noida.
The meeting was chaired by K.K. Pathak, Joint Secretary in the Department of Fertilisers and Chairman and Managing Director of PDIL.
It was attended by stakeholders from both the public and private sectors, including NTPC, Solar Energy Corporation of India (SECI), technology suppliers of ammonia and urea, fertiliser companies, and manufacturers of electrolysers, Green Hydrogen and Green Ammonia.
According to the roadmap, multiple ministries will support the development of Green Urea production. The Ministry of New and Renewable Energy (MNRE) will provide financial support of Rs 19,744 crore to accelerate green energy infrastructure and strengthen India's clean energy ecosystem.
Ministry of Chemicals and Fertilisers said, "Marking a monumental shift toward sustainable agriculture, carbon neutrality, and technological self-reliance, the Department of Fertilisers (DoF) successfully conducted a high-level Pre-Expression of Interest (EOI) Meeting for the Establishment of Green Urea Plants in India".
The Department of Fertilisers will create the institutional and market framework required to integrate Green Ammonia into the country's fertiliser manufacturing chain.
To address the higher cost of Green Ammonia compared with conventional Grey Ammonia, the government has proposed a differential subsidy mechanism.
Under the framework, SECI will purchase Green Ammonia from producers and supply it to domestic fertiliser companies at market-linked Grey Ammonia prices.
The Department of Fertilisers will cover the difference in cost, ensuring fertiliser manufacturers receive Green Ammonia at cost parity with conventional feedstock.
The initiative also includes producer-side incentives under NGHM Green Ammonia Mode 2A. A total procurement target of 7.24 lakh MT per annum of Green Ammonia will be allocated through a competitive e-reverse auction process managed by SECI.
The support will cover both development-stage and operational-stage projects. Incentives will begin from the date of commercial supply, while benefits will be secured for a period of 10 years through binding agreements, providing long-term certainty to developers.
Discussions during the meeting also highlighted the 150 tonnes per day Green Urea pilot plant at Pudimadaka in Andhra Pradesh, developed by NETRA, the research and development arm of NTPC.
The facility integrates carbon capture and utilisation systems with water electrolysis and serves as a benchmark for future projects.
The government said India's Net Zero target for 2070 and the National Green Hydrogen Mission provide an opportunity to transform domestic urea production.
With India continuing to import around 1 crore MT of urea annually and many existing plants being over 30 years old, significant new capacity will be required in the coming years.
According to the roadmap, integrated projects combining renewable energy, Green Hydrogen, carbon capture, Green Ammonia and urea production can strengthen the country's fertiliser and energy security while supporting climate goals.
— ANI
Reader Comments
Great initiative but 150 TPD pilot plant at Pudimadaka is tiny. India consumes lakhs of tonnes of urea daily. The cost differential subsidy is interesting—grey ammonia is cheaper because it's made from natural gas, which we import. So we're using subsidies to replace one imported input (gas) with another imported technology (electrolysers?). Need to ensure we make electrolysers locally too, else it's just shifting dependency.
This is exactly the kind of futuristic thinking we need. Every rupee spent on green ammonia is an investment in energy independence and climate action. But will farmers see lower prices? That's the real test. If green urea costs more even with subsidy, farmers will stick to conventional ones. The government must ensure affordability at the farm gate. Otherwise it's all talk.
Interesting move! A differential subsidy mechanism is clever—it protects fertiliser companies from cost shocks. But 10-year binding agreements lock in support. What if green ammonia technology gets cheaper in 5 years? Taxpayers might end up overpaying. Still, India needs to start somewhere to meet 2070 net-zero target. Hope this doesn't become another subsidy-heavy scheme with limited outcomes.
Good step but 7.24 lakh MT is just 7% of our annual urea imports (1 crore MT). We need to target 50% replacement in 5 years. Also, carbon capture at Pudimadaka is good but energy-intensive. Are we using renewable energy for the capture process? Otherwise net benefit is questionable. Still, proud that India is thinking green ammonia. Better late than never! 🇮🇳🌱
R Rajesh Q