India has taken a significant step towards developing a carbon-neutral fertilizer industry by bringing together government agencies, public sector enterprises and private companies to accelerate the establishment of Green Urea plants across the country. The Department of Fertilizers (DoF) recently hosted a high-level Pre-Expression of Interest (EOI) meeting at Projects and Development India Limited (PDIL) in Noida, laying the groundwork for large-scale investments in Green Urea production powered by renewable energy and green hydrogen.
The meeting, chaired by Dr. K.K. Pathak, Joint Secretary in the Department of Fertilizers and Chairman and Managing Director of PDIL, followed the release of the Department’s invitation for Expressions of Interest earlier this week. It attracted major stakeholders from across the fertilizer, renewable energy and hydrogen sectors, reflecting strong industry interest in supporting India’s clean energy transition while strengthening fertilizer security.
Industry and Government Unite Behind Green Urea
The meeting brought together representatives from NTPC, the Solar Energy Corporation of India (SECI), leading fertilizer companies, technology suppliers for ammonia and urea production, manufacturers of electrolyzers and companies involved in Green Hydrogen and Green Ammonia production. Strong participation, both online and in person, highlighted growing confidence in India’s plans to establish a domestic Green Urea industry.
Officials outlined a coordinated approach involving multiple ministries to make Green Urea commercially viable. The Ministry of New and Renewable Energy (MNRE) is supporting the broader clean energy ecosystem through an allocation of ₹19,744 crore, while the Department of Fertilizers is responsible for creating the policy and institutional framework needed to integrate Green Ammonia into India’s fertilizer manufacturing chain.
A major focus of the discussions was addressing the current cost difference between conventional Grey Ammonia and environmentally friendly Green Ammonia. Since Green Ammonia remains more expensive to produce, participants discussed mechanisms that would allow fertilizer manufacturers to access the cleaner alternative without facing significantly higher production costs.
Under an existing framework, SECI has already invited bids to procure Green Ammonia from producers and supply it to domestic fertilizer companies at prices linked to conventional Grey Ammonia benchmarks, using international market indices along with customs duties and local transport costs. Officials indicated that a similar pricing mechanism may also be considered for Green Urea to encourage wider adoption.
Incentives Designed to Encourage Investment
To attract private investment, the government also presented financial incentives available under the National Green Hydrogen Mission (NGHM), specifically through the Green Ammonia Mode 2A programme. The scheme targets the procurement of 7.24 lakh metric tonnes of Green Ammonia per year, with allocations determined through a transparent electronic reverse auction managed by SECI. Financial support will be available throughout different stages of project development, beginning with new greenfield projects and continuing after commercial production starts. Developers will also benefit from long-term certainty through 10-year Green Ammonia Purchase Agreements (GAPA) and Green Ammonia Supply Agreements (GASA), providing stable demand and encouraging investment in large-scale manufacturing facilities.
The meeting also highlighted the 150-tonne-per-day Green Urea pilot plant at Pudimadaka in Andhra Pradesh, developed by NTPC’s research arm, NETRA. The pilot project demonstrates how renewable electricity, water electrolysis and Carbon Capture and Utilisation (CCUS) technologies can be integrated to produce Green Urea while making productive use of captured carbon dioxide. Officials described the facility as an important technical benchmark for future commercial-scale Green Urea plants across India.
Green Urea Supports Climate and Fertilizer Security
India’s long-term strategy is closely linked to its Net Zero emissions target for 2070 and the objectives of the National Green Hydrogen Mission. Although Green Hydrogen can replace fossil fuels in ammonia production, urea manufacturing still requires carbon dioxide as a raw material. Capturing CO₂ from thermal power stations, cement plants and steel factories offers a sustainable solution while reducing industrial emissions.
According to government estimates, a world-scale urea plant with an annual capacity of 12.7 lakh metric tonnes requires nearly 10 lakh metric tonnes of carbon dioxide every year. With India continuing to import approximately one crore metric tonnes of urea annually, significant additional production capacity will be needed in the coming years. Green Urea plants could therefore become one of the country’s largest consumers of captured carbon dioxide while reducing dependence on imports.
The government believes integrated projects combining renewable energy, Green Hydrogen, carbon capture, Green Ammonia and Green Urea production will strengthen both fertilizer security and energy security while supporting India’s climate commitments. Organisations such as NTPC, which already possess expertise in renewable energy, hydrogen technologies and fertilizer production through HURL, are considered well placed to lead these large-scale projects.
By encouraging collaboration between government, industry and technology providers, India is laying the foundation for a new generation of environmentally sustainable fertilizer plants. The initiative not only supports cleaner agricultural production but also advances technological self-reliance, industrial innovation and the country’s ambition to become a global leader in green manufacturing.
