India Signs 10-Year Green Ammonia Deals, Targets USD 2.5 Billion in Forex Savings

India took a major step towards clean energy self-reliance as Green Ammonia Purchase and Supply Agreements were exchanged under the National Green Hydrogen Mission (NGHM) at Atal Akshay Urja Bhawan, New Delhi.

Union Minister of New and Renewable Energy, Pralhad Joshi, and Union Minister of Health, Chemicals and Fertilisers, J P Nadda, presided over the signing, describing it as a historic milestone in India's energy transition journey.

The long-term agreements, signed between SECI, private developers, and 13 fertiliser units, cover a combined allocation of 7.24 lakh tonnes per annum of green ammonia. Spanning 10 years, these deals are expected to generate foreign exchange savings of approximately USD 2.5 billion by replacing imported grey ammonia with domestically produced green ammonia.

India's competitive bidding process discovered green ammonia prices ranging between INR 49.75 – INR 64.74 per kg, significantly lower than the international benchmark of approximately INR 110 per kg (Euro 1,000/tonne), signalling strong cost competitiveness.

Key developers including ACME Cleantech, Jakson Green and OCIOR, NTPC Renewable Energy, Oriana Power, and SCC Infrastructure signed agreements with major fertilizer companies including IFFCO, Coromandel International, Paradeep Phosphates, and Indorama India.

Minister Nadda emphasised that the initiative will reduce import dependence, improve affordability for farmers, and accelerate India's journey towards self-reliance in the fertiliser sector.

Minister Joshi noted that the next phase of India's energy transition will target hard-to-abate sectors, fertilisers, steel, refineries, and transport, where green hydrogen derivatives will play a transformative role.

India is currently implementing the National Green Hydrogen Mission with an outlay of INR 19,744 crore, targeting production of at least 5 million metric tonnes of green hydrogen annually by 2030.