New Delhi: The Department of Fertilisers exchanging Green Ammonia agreements for 11 projects under the National Green Hydrogen Mission will reduce carbon emissions and ensure long-term energy security and self-reliance, said Union Minister of Chemicals and Fertilisers, JP Nadda on Tuesday.
He called the exchange of Green Ammonia Agreements a historic step in India’s journey towards sustainable fertilizer production, adding that the initiative reflects the government’s unwavering commitment to building a cleaner, greener future for farmers and the country.
Department of Fertilizers (DoF) exchanged Green Ammonia Purchase Agreements (GAPA) and Green Ammonia Supply Agreements (GASA) here between fertilizers companies and green ammonia producers to operationalise 11 projects under the National Green Hydrogen Mission (NGHM).
Indian fertilisers companies have entered into long-term agreements for the supply of green ammonia at fixed prices for a period of 10 years. This strategic move is expected to ensure a stable and reliable supply of ammonia, thereby supporting consistent domestic production of P&K fertilizers and helping maintain price stability in the Indian market.
India currently produces approximately 165–170 LMT of Phosphatic and Potassic (P&K) fertilizers, including DAP and NPK variants. However, a significant portion of domestic production remains dependent on imported ammonia.
Ongoing geopolitical developments have disrupted the global ammonia market, causing volatility in both availability and prices, making fertilizer production in India unstable.
Purchase Agreements and Green Ammonia Supply Agreements under the National Green Hydrogen Mission, marking a major step to operationalise green hydrogen and green ammonia in the fertiliser value chain.
The adoption of green ammonia offers will also help conserve foreign exchange by reducing import dependence, promote self-reliance in the fertilizer sector, and create new employment opportunities.
It is likely to encourage investments in the development of green ammonia production capacity within the country, the statement said. A stable supply environment will also attract new players to the fertilizers sector, leading to more manufacturing units in the future.
National Green Hydrogen Mission (NGHM) is being implemented with an outlay of Rs 19,744 crore, targeting the production of at least 5 million metric tonnes (MMT) of green hydrogen per annum by 2030.
(IANS)
