New Delhi, Mar 31 (TNT): In a major step towards clean energy transition, the Department of Fertilizers (DoF) on Tuesday facilitated the exchange of Green Ammonia Purchase Agreements (GAPA) and Green Ammonia Supply Agreements (GASA) between fertiliser companies and green ammonia producers under the National Green Hydrogen Mission.
The agreements, covering 11 projects in the fertiliser sector, mark a key milestone in operationalising green hydrogen and green ammonia initiatives aimed at reducing carbon emissions and import dependence, an official release said here.
The exchange of agreements took place in the presence of Union Minister of Chemicals and Fertilizers J. P. Nadda and Union Minister of Renewable Energy Pralhad Joshi, along with senior officials and industry stakeholders.
The initiative involves fertiliser companies entering into 10-year contracts with green ammonia producers to ensure stable and cost-effective supply, insulating domestic production from global price volatility.
India currently produces around 165–170 lakh metric tonnes of phosphatic and potassic fertilisers but relies significantly on imported ammonia, making the sector vulnerable to supply disruptions and price fluctuations.
Under the programme, competitive bidding conducted by the Solar Energy Corporation of India (SECI) discovered prices in the range of ₹49.75–₹64.74 per kg, lower than prevailing international rates.
A total green ammonia supply capacity of 7.24 lakh tonnes per annum has been tied up with 13 fertiliser units.
During the agreement signing ceremony, Nadda, said: “The exchange of Green Ammonia Agreements marks a historic step in India’s journey towards sustainable fertilizer production. By integrating green ammonia into our supply chains, we are not only reducing carbon emissions but also ensuring long-term energy security and self-reliance. This initiative reflects the Government’s unwavering commitment to building a cleaner, greener future for our farmers and for the nation.”
The government said the move will help reduce the carbon footprint of the fertiliser industry, promote self-reliance and generate foreign exchange savings of about $2.5 billion over 10 years by replacing imported ammonia.
The agreements mark a key step in integrating green hydrogen derivatives into India’s fertiliser value chain under the National Green Hydrogen Mission, which has an outlay of ₹19,744 crore and targets production of 5 million metric tonnes of green hydrogen annually by 2030.
Senior officials including Rajat Kumar Mishra, Secretary, Department of Fertilizers, and Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy, were also present, alongside CMDs/CEOs of Fertilizers units and green ammonia producers.
TNT KS
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