India is testing the use of green ammonia as an alternative to conventional urea fertiliser in pilot projects covering 10,000 acres across six states, as the government looks to reduce fertiliser costs, improve nutrient use and cut import dependence.
The trials, being conducted under the National Green Hydrogen Mission (NGHM) in collaboration with the Indian Council of Agricultural Research (ICAR), involve applying green ammonia directly into the soil instead of using conventional fertiliser application methods.
Ministry of New and Renewable Energy (MNRE) Secretary Santosh Kumar Sarangi said the trials involve placing the fertiliser around six inches below the ground, reducing the quantity required in a single application. Conventional application methods can lead to fertiliser losses during irrigation, he said.
The initiative aims to bring fertiliser costs down to around one-third of current levels, Sarangi said, highlighting the significant government subsidy involved in supplying urea to farmers.
India secures green ammonia export deals
Sarangi also highlighted progress under the National Green Hydrogen Mission, noting that Indian company AM Green has secured a deal to supply 70,000 tonnes of green ammonia annually to Japanese energy company JERA.
Cumulative orders have been secured for the supply of 5.5 lakh tonnes of green hydrogen to various countries, he said. He added that green hydrogen and its derivatives could find wider use in industries such as steelmaking, while pilot projects are also exploring applications in road transport.
Demand for green ammonia and green methanol is expected to grow, with potential orders from the European Union, South Korea and Japan. The shipping industry is also expected to increase its use of cleaner fuels, Sarangi said.
ACME signs long-term green fuel supply agreements with Japanese companies
On July 2, 2026, ACME Cleantech Solutions Private Limited, part of the ACME Group, secured long-term supply agreements with Japanese companies IHI Corporation and Mitsubishi Gas Chemical Company (MGC) for green ammonia and green methanol, respectively.
Under its agreement with IHI Corporation, ACME will supply 4.05 lakh tonnes of green ammonia annually. The arrangement is supported by Japan’s Contract for Difference (CfD) scheme for low-carbon ammonia, administered by the Ministry of Economy, Trade and Industry (METI). The scheme provides price support to Japanese buyers to improve the commercial viability of long-term imports.
ACME has also signed a 10-year agreement with MGC to supply 1 lakh tonnes of green methanol annually from its facility in Paradip, Odisha.
The project aims to support the shipping industry’s shift towards cleaner fuels. It is designed to meet the European Union’s Renewable Fuels of Non-Biological Origin (RFNBO) requirements and International Maritime Organization (IMO) standards for cleaner marine fuels.
Green Hydrogen Mission aims to build domestic production capacity
Approved in January 2023 with an outlay of ₹19,744 crore, the National Green Hydrogen Mission aims to establish India as a global hub for producing, using and exporting green hydrogen and its derivatives.
Under the mission, the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme provides financial support for production through a competitive bidding process conducted by the Solar Energy Corporation of India (SECI).
ACME Group has been awarded green ammonia production capacity of 3.7 lakh tonnes per annum under the SIGHT programme, providing a foundation for its export agreements.
Sarangi said the agreements had established a market link with Japan for green ammonia and green methanol, giving investors greater confidence in the sector’s commercial prospects and positioning Indian clean fuels as potential suppliers to global markets.
India tests green ammonia as fertiliser alternative to cut costs and urea imports
