Government Strategy for Green Urea Production
The government is actively exploring strategies, including establishing a subsidy plan, to support local urea manufacturers facing cost disparities between green and conventional grey ammonia. The goal is to enhance domestic production of green urea.
Pre-Expression of Interest (EoI) Meeting
- The Department of Fertilisers issued an EoI for setting up green urea plants.
- Joint Secretary KK Pathak chaired the meeting with stakeholders to discuss options for making green urea production competitive.
Cost Challenges with Green Ammonia
Green ammonia, used in green urea production, incurs higher production costs than grey ammonia, making it uncompetitive without financial support.
Proposed Solutions
- Arrangement with SECI:
- SECI to act as an intermediary, purchasing green ammonia and supplying it to domestic companies at prices equivalent to grey ammonia.
- Prices will be benchmarked to the Platts and Argus indices, adjusted for Customs duties and logistics.
- The Department of Fertilisers will cover the remaining price difference.
- Procurement and Auction:
- SECI plans a procurement target of 724,000 tonnes of green ammonia.
- Allocation through a competitive e-reverse auction.
- Financial Incentives:
- A potential financial-incentive scheme under the National Green Hydrogen Mission to encourage private-sector participation.
Industry Response and Future Plans
- A strong turnout from stakeholders indicates a high interest in green urea initiatives.
- The financial support roadmap involves multiple ministries, with a proposed outlay of ₹19,744 crore by MNRE for green energy infrastructure.
- The Department of Fertilisers is developing a framework to integrate green ammonia into the national chain.
- A pilot plant for green urea production in Pudimadaka, Andhra Pradesh, is under development by NTPC's R&D wing, NETRA.
