Centre Invites Bids for Green Urea Plants to Boost Sustainable Fertiliser Production in Country
New Delhi, June 26 (TNT): The Department of Fertilizers (DoF) has initiated the process for establishing Green Urea plants in the country by holding a high-level pre-Expression of Interest (EOI) meeting with stakeholders, marking a major step towards promoting sustainable agriculture, carbon neutrality and technological self-reliance.
The meeting, held at Projects and Development India Limited (PDIL) headquarters in Noida on Friday, was chaired by Department of Fertilizers Joint Secretary Dr. K.K. Pathak, who is also the Chairman and Managing Director of PDIL.
The Department had earlier this week invited Expressions of Interest for setting up Green Urea plants across India.
The meeting witnessed participation from public and private sector stakeholders, including NTPC, Solar Energy Corporation of India (SECI), leading fertilizer companies, technology providers for ammonia and urea production, manufacturers of electrolyzers, and developers of green hydrogen and green ammonia projects.
According to the Department, the enthusiastic participation from industry reflected strong interest in developing a domestic Green Urea manufacturing ecosystem.
During the discussions, officials highlighted the Government’s coordinated support for the initiative through multiple ministries.
The Ministry of New and Renewable Energy (MNRE) has earmarked Rs.19,744 crore for strengthening green energy infrastructure, while the Department of Fertilizers will create the institutional framework for integrating Green Ammonia into fertilizer production.
To address the higher production cost of Green Ammonia compared to conventional Grey Ammonia, the meeting discussed a differential pricing mechanism under which SECI would procure Green Ammonia from producers and supply
it to fertilizer manufacturers at market-linked Grey Ammonia prices. A similar mechanism is also being explored for Green Urea.
The Department also outlined producer-side incentives under the National Green Hydrogen Mission (NGHM). A procurement target of 7.24 lakh metric tonnes of Green Ammonia per annum has been allocated through a competitive e-reverse auction conducted by SECI. Developers will receive financial support during project development and operational phases, with benefits assured for 10 years through long-term agreements.
The discussions also referred to the 150 tonnes per day Green Urea pilot plant at Pudimadaka in Andhra Pradesh, developed by NTPC’s R&D arm NETRA, as a benchmark for integrating renewable energy, water electrolysis and carbon capture technologies for sustainable fertilizer production.
The Department said India imports nearly one crore metric tonnes of urea annually, while many existing fertilizer plants are over three decades old, creating a strong case for new capacity based on Green Hydrogen and captured carbon dioxide.
A world-scale Green Urea plant with an annual capacity of 12.7 lakh metric tonnes would require nearly 10 lakh metric tonnes of carbon dioxide each year, which can be sourced from thermal power, cement and steel plants through carbon capture technologies.
The Department said integrated projects combining renewable energy, Green Hydrogen, carbon capture, Green Ammonia and Green Urea production would strengthen the country’s fertilizer and energy security while supporting India’s target of achieving net-zero emissions by 2070.
It also encouraged investors to develop integrated Green Urea projects by leveraging incentives available under the National Green Hydrogen Mission and the emerging carbon capture framework.
TNT TS
