Exchange of green ammonia agreements a historic step towards sustainable fertiliser production: Union Minister Nadda

The Department of Fertilizers (DoF) has advanced India’s clean energy transition with the exchange of Green Ammonia Purchase Agreements (GAPA) and Green Ammonia Supply Agreements (GASA) between fertiliser companies and green ammonia producers, paving the way for operationalising projects under the National Green Hydrogen Mission (NGHM).

The exchange of Green Ammonia Agreements covering 11 projects for the fertiliser sector under the NGHM took place in Delhi in the presence of Union Minister for Chemicals & Fertilizers J P Nadda, Union Minister for New and Renewable Energy Pralhad Joshi, and Minister of State for Power and New & Renewable Energy Shripad Y Naik.

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 fertilizer units and green ammonia producers.

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.”

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, leading to volatility in both availability and prices, which in turn affects the stability of fertilizer production in India.

To address this challenge, Indian fertilizer 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.

In addition, the adoption of green ammonia offers several broader benefits. It will help conserve foreign exchange by reducing import dependence, promote self-reliance in the fertilizer sector, and create new employment opportunities. Furthermore, it is likely to encourage investments in the development of green ammonia production capacity within the country. A stable supply environment will also attract new players to the fertilizer sector, leading to the establishment of additional manufacturing units in the future.

The government is implementing the NGHM 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. The Mission is designed to position India as a global hub for green hydrogen and its derivatives, while enabling sustainable growth and reducing dependence on imported fossil-based inputs.