India has taken a significant step toward strengthening its energy security and accelerating the transition to clean energy, with the exchange of green ammonia purchase and supply agreements under the National Green Hydrogen Mission.
Speaking at the event held at Atal Akshay Urja Bhawan, Union Minister Pralhad Joshi highlighted that the agreements mark a crucial milestone in reducing India’s dependence on imports and enhancing long-term energy security amid global uncertainties.
The agreements, signed between industry players, the Solar Energy Corporation of India, and fertilizer companies, carry a tenure of 10 years and are expected to provide demand certainty, facilitate financial closure, and unlock large-scale investments in green ammonia production.
Union Minister J. P. Nadda described the initiative as a “historic and forward-looking step” toward operationalising a domestic green ammonia ecosystem. He added that the move would reduce import dependency, improve affordability, and ensure supply stability for farmers, aligning with the vision of Aatmanirbhar Bharat.
Under the initiative, approximately 7.24 lakh tonnes per annum of green ammonia has been allocated to fertilizer units across the country, marking one of the largest such deployments globally. The shift from imported grey ammonia to green ammonia is projected to generate foreign exchange savings of nearly $2.5 billion over the next decade.
Officials noted that the next phase of India’s energy transition will focus on hard-to-abate sectors such as fertilizers, refineries, steel, and transport, where green hydrogen derivatives like green ammonia will play a critical role.
The government’s competitive bidding process, conducted by SECI, has resulted in the discovery of green ammonia prices ranging between ₹49.75 and ₹64.74 per kg—significantly lower than international benchmarks of around ₹110 per kg—highlighting India’s growing cost competitiveness in the sector.
The agreements involve leading fertilizer companies such as Indian Farmers Fertiliser Cooperative Limited, Coromandel International Limited, Paradeep Phosphates Limited, and Indorama India Private Limited, along with developers including ACME Cleantech, NTPC Renewable Energy, and Oriana Power Limited.
The National Green Hydrogen Mission, with an outlay of ₹19,744 crore, aims to position India as a global hub for green hydrogen production, targeting at least 5 million metric tonnes annually by 2030. Through initiatives such as the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, the government seeks to drive large-scale adoption, enhance energy security, and attract investments into the clean energy value chain.
The latest agreements signal a decisive move toward building a resilient domestic supply chain while reinforcing India’s commitment to sustainable industrial growth.
Related
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
