Exchange of Green Ammonia Agreements Under NGHM Mark Key Step for India’s Energy Security: Union Minister Pralhad Joshi – EQ

In Short : India exchanged Green Ammonia agreements under the National Green Hydrogen Mission, with Union Minister Pralhad Joshi calling it a major step toward energy security. The initiative will reduce import dependence, support fertiliser production, and create long-term demand for domestic green hydrogen. Competitive pricing and decade-long contracts are expected to accelerate investments and strengthen India’s clean energy transition going forward overall.

In Detail : Operationalisation of Green Ammonia Ecosystem to Benefit Farmers and Strengthen Aatmanirbhar Bharat: Union Minister J P Nadda

India Accelerates Shift to Green Ammonia in Fertilizer Sector; Boost to Domestic Capability and Supply Chain Resilience

National Green Hydrogen Mission Achieves Key Milestone with Large-Scale Green Ammonia Allocation

Union Minister of New and Renewable Energy, Pralhad Joshi, today said that the exchange of Green Ammonia Purchase Agreements and Green Ammonia Supply Agreements marks an important step in strengthening India’s energy security, especially at a time when the world is facing uncertainty. He was addressing the Exchange of Green Ammonia Agreements for the fertiliser sector under the National Green Hydrogen Mission at Atal Akshay Urja Bhawan in presence of Union Minister of Health & Family Welfare and Chemicals & Fertilisers Shri J P Nadda.

Union Minister Joshi highlighted that under the leadership of the Prime Minister Shri Narendra Modi, India has demonstrated that economic growth and climate action can move together at scale and at speed. He noted that India is today one of the fastest growing renewable energy markets in the world and is on track to achieve 500 GW of non-fossil fuel capacity by 2030.

The exchange of agreements between industry, SECI and fertilizer companies, with a tenure of 10 years, marks a key milestone towards operationalising these projects, the Minister said. The long-term agreements provide demand certainty, enable financial closure and support large-scale investments in green ammonia production.

The Minister emphasised that energy security is closely linked to national security and highlighted the importance of reducing import dependence in critical sectors. He stated that replacing imported grey ammonia with green ammonia will strengthen domestic capability and build resilient supply chains. The initiative is expected to result in foreign exchange savings of approximately $2.5 billion over a period of 10 years through substitution of imported grey ammonia in non-urea based fertilizer units.

The Minister further 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 and its derivatives will play a critical role. He added that green ammonia will not only serve as a clean feedstock but also help build a new industrial ecosystem, generate jobs and attract investments.

Large-Scale Allocation to Fertilizer Sector

Union Minister Shri J. P. Nadda, described the initiative as a historic and forward-looking step towards building a robust green ammonia ecosystem in the country. He said that the agreements mark the operationalisation of green ammonia in India and reflect the Government’s strong commitment to promoting sustainable and affordable solutions in the fertilizer sector.

Highlighting India’s development model, he noted that the country has demonstrated that growth and sustainability can go hand in hand under the leadership of Prime Minister Modi. He emphasised that the initiative will reduce dependence on imports, improve affordability, and strengthen self-reliance in the fertilizer sector, ensuring that farmers have nothing to worry about. He further stated that with the allocation of about 7.24 lakh tonnes per annum of green ammonia, the country is moving decisively towards an Aatmanirbhar Bharat, while also creating new opportunities for growth and investment in the sector.

Union Minister of State for Power & New and Renewable Energy, Shri Shripad Yesso Naik, Shri Rajat Kumar Mishra, Secretary, Department of Fertilizers (DoF) and Shri Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy (MNRE) also attended the event along with other senior officials from DoF, MNRE, and SECI.

Background

The Government of India is implementing the National Green Hydrogen Mission with an outlay of ₹19,744 crore, aimed at positioning India as a global hub for the production, utilization, and export of green hydrogen and its derivatives. The Mission targets the production of at least 5 million metric tonnes (MMT) of green hydrogen per annum by 2030, while enabling decarbonization of key sectors, enhancing energy security, and attracting investments.

Under the Mission, the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme is being implemented for incentivising the production of Green Hydrogen in India and cost competitiveness through transparent competitive bidding. In this context, Solar Energy Corporation of India (SECI) has conducted competitive bidding for the supply of green ammonia to fertilizer units across the country.

The bidding process has led to the discovery of competitive green ammonia prices, with the lowest discovered price of approximately ₹49.75 per kg and an overall discovered price range of about ₹49.75 – 64.74 per kg. In comparison, internationally discovered prices have been reported at approximately Euro 1000 per tonne (around ₹110 per kg), indicating that the prices discovered in India are competitive as compared with global benchmarks.

Through this process, SECI has allocated a total capacity of approximately 7,24,000 tonnes per annum (TPA) to selected developers, with supply linked to 13 fertilizer units across the country. The competitive bidding has ensured transparency, efficient price discovery, and long-term demand assurance, thereby enabling scale-up and investment in green ammonia production.

The following companies signed the agreements: