New Delhi, Mar 31 (PTI) Domestic green ammonia supply to Indian fertiliser companies under landmark contracts signed this week will not be available before 2028, as producers need to first construct new manufacturing plants, industry executives said on Tuesday.
Five fertiliser companies — IFFCO, Coromandel International, Paradeep Phosphates (PPL), Ostwal and Indorama India — on Monday signed 10-year agreements to procure 6.7 lakh tonnes of green ammonia annually from five domestic producers under the National Green Hydrogen Mission (NGHM).
However, executives cautioned that actual supplies remain years away.
“They will supply this after three years, and from then onwards for 10 years. So in the current West Asia crisis, there is no help,” IFFCO
Director Birinder Singh told PTI.
IFFCO’s agreement is for the procurement of 2 lakh tonnes of green ammonium for Rs 49.75 per kg and 54.73 per kg.
PPL Managing Director and CEO N Suresh Krishnan echoed the timeline, saying new ammonia plants typically take three years to commission. One facility each is coming up near Paradeep (Odisha) and Goa, earmarked to supply PPL’s contracted 1.25 lakh tonnes, he said.
PPL has contracted green ammonia in the price range of Rs 55.75 per kg to Rs 62.84 per kg.
India currently relies on imports to meet the gap in demand, particularly for fertilizers.
IFFCO alone imports around 8 lakh tonnes of grey ammonia annually, leaving fertiliser makers vulnerable to volatile global prices and supply disruptions worsened by the ongoing West Asia conflict.
Krishnan said a price premium of around USD 200 per tonne that green ammonia currently commands over conventional grey ammonia was expected to narrow by the time supplies begin.
“We all believe that by the time it comes in, the difference should come down quite significantly,” he said.
The Department of Fertilisers has agreed to compensate companies for any price differential between green and grey ammonia, a provision incorporated into the supply agreements, executives said.
The Solar Energy Corporation of India (SECI) acted as the nodal agency for the contracts, which link supply to fertiliser units across the country.
Green ammonia, produced via renewable-powered electrolysis rather than fossil fuels, offers a zero-carbon alternative for fertilizer production. By replacing traditional “grey” ammonia, it directly decarbonizes nitrogen fertilizer manufacturing. PTI LUX HVA
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