News and Articles

• India exchanged green ammonia purchase and supply agreements for 11 fertilizer-linked projects 
• Ten-year fixed-price contracts aim to steady ammonia supply for domestic P and K fertilizer production 
• SECI discovered bid prices of Rs 49.75 to Rs 64.74 per kg against an international benchmark near Rs 110 per kg 
• Green ammonia allocation totals 7.24 lakh tonnes a year linked to 13 fertilizer units 
• Import substitution is projected to save about $2.5 billion in foreign exchange over 10 years

India has moved to lock in long-term green ammonia supplies for its fertilizer sector, with the Department of Fertilizers overseeing the exchange of purchase and supply agreements between fertilizer manufacturers and green ammonia producers under the National Green Hydrogen Mission. The agreements, covering 11 projects, are intended to bring green ammonia into domestic fertilizer production and cut reliance on imported conventional ammonia.

The move comes as India’s phosphatic and potassic fertilizer industry remains exposed to swings in the global ammonia market. The country produces about 165 to 170 lakh metric tonnes of P and K fertilizers, including DAP and NPK grades, but a large share of this output still depends on imported ammonia. Officials expect the new supply contracts, signed for 10 years at fixed prices, to give producers greater certainty on feedstock availability and help keep fertilizer production steady.

The green ammonia contracts follow a competitive bidding process run by the Solar Energy Corporation of India under the Strategic Interventions for Green Hydrogen Transition programme. That process discovered prices in the range of Rs 49.75 to Rs 64.74 per kg, well below the roughly Rs 110 per kg cited as an international benchmark. SECI has allocated 7.24 lakh tonnes a year of green ammonia supply tied to 13 fertilizer units across the country, giving project developers long-term demand visibility and producers a clear supply pipeline.

The government expects the shift to green ammonia to lower the fertilizer industry’s carbon footprint, reduce imports of grey ammonia used in non-urea units and save about $2.5 billion in foreign exchange over the next decade. Officials also see the programme as a way to draw investment into domestic green ammonia capacity, support new industrial activity and create jobs linked to cleaner fertilizer manufacturing.

The agreements also fit into a wider national push to expand green hydrogen output. India’s green hydrogen mission carries an outlay of Rs 19,744 crore and targets production of at least 5 million metric tonnes a year by 2030. By linking that mission to fertilizer manufacturing, the government is trying to make a critical farm input less exposed to overseas supply shocks while pushing the sector toward lower-emission production.

The agreements are set to cover multiple fertilizer makers and manufacturing units across India, with green ammonia supplies tied to specific developers and bid prices discovered through the process. Indian Farmers Fertiliser Cooperative Limited will sign for two large units, with 1,00,000 tonnes per year each for Kandla in Gujarat and Paradeep in Odisha. Both supplies will come from ACME Cleantech, with discovered prices of Rs 54.73 per kg for Kandla and Rs 49.75 per kg for Paradeep.

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Coromandel International Limited is scheduled to sign for two Andhra Pradesh units. Its Kakinada plant will receive 85,000 tonnes per year from Jakson Green and OCIOR at Rs 50.75 per kg, while its Visakhapatnam unit will get 50,000 tonnes per year from ACME Cleantech at Rs 51.89 per kg.

Paradeep Phosphates Limited will sign for three units. Its Paradeep plant in Odisha will receive 75,000 tonnes per year from ACME Cleantech at Rs 55.75 per kg. Its Zuarinagar unit in Goa will get 25,000 tonnes per year from ACME Cleantech at Rs 62.84 per kg. Its Mangalore unit will be supplied 15,000 tonnes per year by SCC Infrastructure Pvt. Ltd at Rs 57.65 per kg.

Ostwal group companies are also part of the planned agreements. Krishna Phoschem Limited at Meghnagar in Madhya Pradesh will receive 70,000 tonnes per year from NTPC Renewable Energy at Rs 51.80 per kg. Madhya Bharat Agro Products Limited-II at Sagar in Madhya Pradesh will get 60,000 tonnes per year from Oriana Power Limited at Rs 52.25 per kg. Madhya Bharat Agro Products Limited-III at Dhule in Maharashtra will receive 70,000 tonnes per year from SCC Infrastructure Ltd at Rs 53.05 per kg.

Indorama India Private Limited is scheduled to sign for its Haldia unit in West Bengal, which will receive 20,000 tonnes per year from ACME Cleantech at Rs 64.74 per kg.