The Indian government is advancing plans to produce Green Urea domestically, with a target to procure 7.24 lakh metric tonnes (MT) of Green Ammonia each year under the National Green Hydrogen Mission (NGHM). This initiative aims to support the country's clean energy transition and reduce dependence on imported urea.
Government Meeting and Stakeholder Involvement
The Department of Fertilisers (DoF) recently issued an Invitation for Expression of Interest (EOI) for establishing Green Urea plants. A high-level Pre-EOI meeting was held at the Projects and Development India Limited (PDIL) headquarters in Noida, chaired by K.K. Pathak, Joint Secretary in the Department of Fertilisers and Chairman and Managing Director of PDIL. Stakeholders from public and private sectors attended, including NTPC, Solar Energy Corporation of India (SECI), technology suppliers, fertiliser companies, and manufacturers of electrolysers, Green Hydrogen, and Green Ammonia.
Financial Support and Subsidy Mechanism
The Ministry of New and Renewable Energy (MNRE) will provide financial support of Rs 19,744 crore to accelerate green energy infrastructure. To address the higher cost of Green Ammonia compared to conventional Grey Ammonia, the government has proposed a differential subsidy mechanism. SECI will purchase Green Ammonia from producers and supply it to domestic fertiliser companies at market-linked Grey Ammonia prices, with the Department of Fertilisers covering the cost difference. This ensures fertiliser manufacturers receive Green Ammonia at cost parity with conventional feedstock.
Procurement and Incentive Structure
The initiative includes producer-side incentives under NGHM Green Ammonia Mode 2A. A total procurement target of 7.24 lakh MT per annum of Green Ammonia will be allocated through a competitive e-reverse auction process managed by SECI. Support covers both development-stage and operational-stage projects, with incentives beginning from the date of commercial supply and secured for 10 years through binding agreements, providing long-term certainty to developers.
Pilot Plant and Future Capacity
Discussions highlighted the 150 tonnes per day Green Urea pilot plant at Pudimadaka in Andhra Pradesh, developed by NETRA, the research and development arm of NTPC. The facility integrates carbon capture and utilisation systems with water electrolysis, serving as a benchmark for future projects. With India importing around 1 crore MT of urea annually and many existing plants over 30 years old, significant new capacity will be required in the coming years.
Strategic Importance
The Ministry of Chemicals and Fertilisers stated, "Marking a monumental shift toward sustainable agriculture, carbon neutrality, and technological self-reliance, the Department of Fertilisers (DoF) successfully conducted a high-level Pre-Expression of Interest (EOI) Meeting for the Establishment of Green Urea Plants in India." The roadmap envisions integrated projects combining renewable energy, Green Hydrogen, carbon capture, Green Ammonia, and urea production to strengthen fertiliser and energy security while supporting climate goals.
