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India's Green Ammonia Shift: A New Era for Fertilizers?
16 Oct
Summary
- Green ammonia aims to cut fertilizer input costs and supply risks.
- Government allocates 7.24 lakh tonnes of green ammonia annually.
- Three companies, Paradeep Phosphates, Coromandel, and FACT, are key players.
India's fertiliser sector is on the cusp of a significant transformation with the increasing adoption of green ammonia. This cleaner alternative, produced using renewable electricity and green hydrogen, aims to mitigate the volatile costs and supply chain risks associated with conventional ammonia derived from natural gas. The government's National Green Hydrogen Mission (NGHM) has backed this transition by allocating 7.24 lakh tonnes per annum of green ammonia supply to 13 fertiliser units.
Paradeep Phosphates Limited (PPL) and Coromandel International are at the forefront, having secured substantial allocations under SECI auctions. PPL has an allocation of 100,000 TPA for its Paradeep and Goa facilities, though supply is expected in two to three years. Coromandel International has secured 135,000 TPA for its Kakinada and Visakhapatnam plants at competitive prices. The Fertilisers and Chemicals Travancore Limited (FACT) remains in the exploration stage, with its green ammonia activities currently limited to preliminary agreements and tenders.
While the discovered prices for green ammonia range from ₹49.75 to ₹64.74 per kg, several factors influence the true economic cost, including delivery terms and government incentives. The reliability of renewable electricity supply for electrolysers and the logistics of transportation present ongoing challenges. Successfully navigating these will be crucial for fertiliser manufacturers to realize the potential benefits of improved input-cost management and enhanced supply security.
