The Department of Fertilisers, under the National Green Hydrogen Mission, has finalized agreements for 11 projects involving Green Ammonia, aiming to cut carbon emissions and enhance energy security. Union Minister of Chemicals and Fertilisers, JP Nadda, emphasized the significance of these agreements in steering India towards eco-friendly fertilizer production. This move underscores the government’s dedication to fostering a cleaner, more sustainable future for farmers and the nation.
The Department of Fertilizers facilitated the exchange of Green Ammonia Purchase Agreements (GAPA) and Green Ammonia Supply Agreements (GASA) among fertilizers companies and green ammonia producers. These agreements are pivotal in operationalizing the 11 projects aligned with the National Green Hydrogen Mission. Indian fertilizers firms have committed to long-term contracts for green ammonia supply at fixed rates over a decade, ensuring a steady and dependable ammonia supply. This strategic decision is poised to bolster domestic P&K fertilizer production and stabilize prices in the Indian market.
India, currently producing around 165–170 LMT of Phosphatic and Potassic (P&K) fertilizers, including DAP and NPK variants, heavily relies on imported ammonia for a significant portion of its production. The volatility in global ammonia markets due to geopolitical shifts has led to instability in fertilizer production within India. The implementation of Purchase Agreements and Green Ammonia Supply Agreements under the National Green Hydrogen Mission is a significant stride towards integrating green hydrogen and green ammonia into the fertilizer value chain.
The adoption of green ammonia solutions is expected to curtail import dependence, conserve foreign exchange, foster self-sufficiency in the fertilizer domain, and generate employment opportunities. This move is likely to attract investments in domestic green ammonia production capacity, paving the way for a stable supply environment and enticing new entrants into the fertilizers sector. The National Green Hydrogen Mission, with an allocated budget of Rs 19,744 crore, targets an annual production of at least 5 million metric tonnes (MMT) of green hydrogen by 2030.
