In a significant move to decarbonise India’s fertilizer industry, the Department of Fertilizers, government of India, facilitated the exchange of Green Ammonia Purchase Agreements (GAPA) and Green Ammonia Supply Agreements (GASA) between fertilizer manufacturers and green ammonia producers. The agreements were formalised in New Delhi under the framework of the National Green Hydrogen Mission. The development represents a crucial step toward integrating green hydrogen derivatives into India’s fertilizer value chain, paving the way for sustainable and low-carbon fertilizer production.
Agreements Cover 11 Green Ammonia Projects
The agreement exchange covers 11 green ammonia projects and took place in the presence of Union Minister for Chemicals and Fertilizers J. P. Nadda and Union Minister for New and Renewable Energy Pralhad Joshi, along with senior government officials and key industry stakeholders. Through these partnerships, fertilizer companies have entered into long-term supply contracts with green ammonia producers, enabling the gradual transition from conventional ammonia to environmentally sustainable alternatives.
Reducing Import Dependence and Price Volatility
India currently produces around 165–170 lakh metric tons of phosphatic and potassic fertilizers, including DAP and NPK variants. However, a significant portion of the ammonia required for these fertilizers is imported, making the sector vulnerable to global supply disruptions and price fluctuations caused by geopolitical developments.
To address this challenge, domestic fertilizer companies have signed 10-year agreements for the supply of green ammonia at fixed prices. These long-term contracts will ensure stable supply, improved cost predictability, and reduced dependence on imports. Moreover, the initiative is expected to generate foreign exchange savings of approximately $2.5 billion over the next decade, while strengthening the country’s fertilizer supply security.
Competitive Bidding Lowers Green Ammonia Prices
The Solar Energy Corporation of India (SECI) played a central role in implementing the initiative. SECI conducted competitive bidding under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, enabling the discovery of competitive pricing for green ammonia. As a result, the discovered prices ranged between ₹49.75 and ₹64.74 per kg, which is significantly lower than global benchmark prices of around ₹110 per kg. In total, SECI has allocated a supply capacity of 7,24,000 tonnes of green ammonia per year across 13 fertilizer plants, further accelerating the adoption of green hydrogen-based solutions in the sector.
Leading Fertilizer and Energy Companies Participate
Several major fertilizer companies have joined the initiative, including Indian Farmers Fertiliser Cooperative Limited (IFFCO), Coromandel International Limited, Paradeep Phosphates Limited and Indorama India Private Limited. Meanwhile, the green ammonia supply will be developed by companies such as ACME Cleantech, NTPC Renewable Energy, Oriana Power Limited, and SCC Infrastructure Pvt. Ltd. These collaborations are expected to stimulate large-scale investments in green ammonia production, while also supporting job creation and technological advancement in India’s clean energy ecosystem.
Driving the Transition from Grey to Green Ammonia
The newly signed agreements are expected to play a pivotal role in integrating green hydrogen derivatives into India’s fertilizer sector. By enabling the shift from grey ammonia to green ammonia, the initiative supports the country’s broader climate commitments and clean energy ambitions. As reported by solarquarter.com, as India continues to expand its green hydrogen ecosystem, these partnerships will help modernise the fertilizer industry, enhance supply security, and promote environmentally responsible agricultural inputs.
