In a major step toward decarbonising India’s fertilizer sector, the Department of Fertilizers under the Government of India has facilitated the exchange of Green Ammonia Purchase Agreements (GAPA) and Green Ammonia Supply Agreements (GASA) between fertilizer companies and green ammonia producers. The agreements were formalised in New Delhi as part of the National Green Hydrogen Mission.
The agreement exchange, covering 11 projects, 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 industry stakeholders.
The initiative marks a significant milestone in operationalising green hydrogen and green ammonia projects in India. It is aimed at reducing the fertilizer sector’s reliance on imported ammonia, which has been subject to global supply disruptions and price volatility due to geopolitical developments.
India currently produces around 165–170 lakh metric tonnes of phosphatic and potassic fertilizers, including DAP and NPK variants, with a substantial portion dependent on ammonia imports. To address this, domestic fertilizer companies have entered into long-term agreements—spanning 10 years—for the supply of green ammonia at fixed prices, ensuring stable availability and cost predictability.
The move is expected to enhance domestic production stability, reduce import dependence, and contribute to foreign exchange savings estimated at approximately $2.5 billion over the next decade. Additionally, it is anticipated to accelerate investments in green ammonia production, generate employment, and strengthen self-reliance in the fertilizer sector.
The Solar Energy Corporation of India played a key role in the initiative by conducting competitive bidding under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme. The discovered prices ranged between ₹49.75 and ₹64.74 per kg—significantly lower than global benchmarks of around ₹110 per kg. SECI has allocated a total supply capacity of 7,24,000 tonnes per annum across 13 fertilizer units.
Participating companies include Indian Farmers Fertiliser Cooperative Limited, Coromandel International Limited, Paradeep Phosphates Limited, and Indorama India Private Limited, among others. Developers involved in supplying green ammonia include ACME Cleantech, NTPC Renewable Energy, Oriana Power Limited, and SCC Infrastructure Pvt. Ltd.
According to J. P. Nadda, the initiative represents a “historic step” toward sustainable fertilizer production, helping reduce carbon emissions while strengthening energy security and long-term self-reliance.
The Government of India has allocated ₹19,744 crore for the National Green Hydrogen Mission, targeting the production of at least 5 million metric tonnes of green hydrogen annually by 2030. The mission aims to position India as a global hub for green hydrogen and its derivatives while supporting a low-carbon economy.
The agreements are expected to play a pivotal role in integrating green hydrogen derivatives into India’s fertilizer value chain, supporting the transition from grey to green ammonia and reinforcing the country’s clean energy ambitions.
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