The government is developing a roadmap for Green Urea production, planning to procure 7.24 lakh MT of Green Ammonia annually. The initiative, under the National Green Hydrogen Mission, aims to support India's clean energy transition.
The government is exploring a roadmap to make Green Urea production a reality in India, with plans to procure 7.24 lakh metric tonnes (MT) of Green Ammonia annually under the National Green Hydrogen Mission (NGHM) to support the country's clean energy transition.
High-Level Meeting Boosts Green Urea Initiative
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.
Government Support and Financial Framework
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".
Differential Subsidy for Cost Parity
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.
Procurement and Producer Incentives
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.
Pilot Project and Future Roadmap
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)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)