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IndiAgri Bureau
New Delhi: The Government of India has taken a significant step towards promoting sustainable fertilizer production by initiating discussions on establishing Green Urea manufacturing plants across the country. The move aligns with India's long-term goals of achieving carbon neutrality, reducing import dependence, and strengthening domestic fertilizer production through clean technologies.
The Department of Fertilizers (DoF) recently held a high-level Pre-Expression of Interest (EOI) meeting at Projects & Development India Limited (PDIL), Noida, bringing together stakeholders from across the green hydrogen, fertilizer, renewable energy, and industrial sectors.
The meeting was chaired by Dr. K.K. Pathak, Joint Secretary, Department of Fertilizers, who also serves as Chairman and Managing Director of PDIL.
Earlier this week, the Department of Fertilizers invited Expressions of Interest (EOIs) from companies interested in setting up Green Urea plants in India. The consultation witnessed participation from public and private sector organizations, including NTPC, the Solar Energy Corporation of India (SECI), fertilizer manufacturers, technology providers for green ammonia and urea production, electrolyzer manufacturers, and green hydrogen developers.
Officials discussed a multi-ministerial support framework aimed at making Green Urea commercially viable.
The Ministry of New and Renewable Energy (MNRE) has earmarked ₹19,744 crore to accelerate green energy infrastructure and strengthen India's clean energy ecosystem. Meanwhile, the Department of Fertilizers will work towards creating policy mechanisms that integrate Green Ammonia into the country's fertilizer manufacturing system.
One of the major challenges discussed was the significantly higher production cost of Green Ammonia compared to conventional Grey Ammonia.
To address this, the government is considering a differential pricing mechanism that would shield fertilizer manufacturers from higher input costs.
Officials noted that SECI has already floated tenders to procure Green Ammonia from producers and supply it to fertilizer manufacturers at market-linked Grey Ammonia prices. A similar model may also be explored for Green Urea, helping bridge the price gap while encouraging clean production.
The meeting also reviewed incentive support available under the National Green Hydrogen Mission (NGHM).
Under the Green Ammonia Mode 2A programme, SECI plans to procure 7.24 lakh metric tonnes of Green Ammonia annually through competitive e-reverse auctions.
Developers will receive financial incentives during both project development and operational phases. Commercial projects supplying Green Ammonia will be eligible for support for up to ten years under long-term agreements, providing greater investment certainty.
Technical discussions highlighted the 150 tonnes per day (TPD) Green Urea pilot plant at Pudimadaka in Andhra Pradesh, developed by NTPC's research arm, NETRA.
The pilot project integrates renewable-powered water electrolysis, Green Hydrogen production, Carbon Capture, Utilisation and Storage (CCUS), and Green Ammonia to manufacture urea. It also demonstrates the utilisation of captured carbon dioxide in producing value-added products such as carbonated fly ash, food-grade materials, and synthetic fuels.
India's National Green Hydrogen Mission and the country's commitment to achieve Net Zero emissions by 2070 are expected to play a crucial role in transforming fertilizer production.
While Green Hydrogen can replace fossil fuels in ammonia manufacturing, urea production still requires carbon dioxide. Captured CO₂ from thermal power plants, cement factories, and steel plants could become a sustainable feedstock for Green Urea production.
According to officials, a world-scale urea plant with an annual capacity of 12.7 lakh metric tonnes requires nearly 10 lakh metric tonnes of carbon dioxide every year.
India currently imports around one crore metric tonnes of urea annually, while many existing domestic plants are more than three decades old. This creates substantial opportunities for new Green Urea projects that combine renewable energy, Green Hydrogen, carbon capture, Green Ammonia, and fertilizer production.
Organisations such as NTPC, with experience in renewable energy, Green Hydrogen, and fertilizer investments through HURL, are expected to play a major role in driving integrated Green Urea projects in the coming years.
The government has encouraged investors to explore integrated Green Urea projects by leveraging incentives available under the National Green Hydrogen Mission and the emerging carbon capture ecosystem, paving the way for cleaner fertilizer production and improved energy security.
