India is actively transitioning towards a cleaner energy landscape by prioritising Green Ammonia, a shift that promises significant environmental, economic, and diplomatic benefits.
Basics and the Shift from Grey to Green
- Ammonia (NH₃) : Ammonia (NH₃), composed of one nitrogen atom and three hydrogen atoms, is widely used in fertilisers (particularly urea) and is increasingly gaining importance as a clean energy carrier and potential marine fuel owing to its high hydrogen content and ease of storage and transport.
- Grey Ammonia : Grey ammonia is produced through the Haber–Bosch process, in which nitrogen from the air is combined with hydrogen obtained from natural gas.
- The use of fossil–fuel–based hydrogen makes overall production highly carbon-intensive and emission-intensive.
- Green Ammonia : Green ammonia is produced using the same Haber–Bosch process, but with hydrogen sourced from green hydrogen.
- Green hydrogen is produced by electrolysing water using renewable energy sources, such as solar or wind power, resulting in near-zero carbon emissions during production.
- Significance of the Shift : The transition from grey to green ammonia significantly reduces greenhouse gas emissions, decreases dependence on fossil fuels and natural gas imports, enhances energy security, and advances climate commitments, while continuing to meet fertiliser and industrial demand.
Strategic Context and Government Missions
- Energy Independence: In January 2026, the Government outlined an estimated $500 billion investment to accelerate the clean energy transition and reduce import dependence.
- Global Competition: While the European Union and South Korea are focusing on import tenders and portfolio standards, India has taken a unique approach through its National Green Hydrogen Mission
- The SIGHT Initiative: Under the National Green Hydrogen Mission, India launched the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme to provide financial incentives and support domestic manufacturing, production, and adoption of green hydrogen and its derivatives, including green ammonia.
The SECI Tender and Economic Viability
- Bulk Procurement: The Solar Energy Corporation of India (SECI) floated a tender in June 2024 to purchase 724,000 tons of green ammonia annually for 13 domestic fertiliser plants.
- Competitive Pricing: The tender concluded in August 2025 discovered prices that were 40–50% lower than the European Union’s purchase rates.
- Price Support Mechanism: Government incentives (starting at ₹8.82 per kg in the first year) and off-take agreements (10-year fixed-price guarantees) have reduced the production cost of green ammonia to approximately $572–704 per ton.
- Commercial Viability: This substantially narrows the cost gap with grey ammonia (around $515 per ton), making green ammonia an increasingly competitive and commercially viable alternative.
Strategic and Geopolitical Benefits
- Export Potential: SECI has pre-identified delivery points near coastal areas, making it easier to transport and export green ammonia by sea.
- Reduced Import Dependency: These new contracts will cover roughly 30% of India’s current ammonia imports, reducing the nation’s vulnerability to global gas price spikes.
- Risk Mitigation: By producing its own ammonia, India reduces currency risks (exposure to dollar fluctuations) and ensures food security against geopolitical disruptions, such as foreign wars.
Challenges in Scaling Green Ammonia
- Storage Requirements: As hydrogen production depends on renewable energy, developers must invest in adequate storage solutions to ensure uninterrupted production, especially during periods when solar or wind power is unavailable.
- Safety and Standards: Given the toxic nature of ammonia, India must establish strong safety regulations and comply with international quality standards to remain competitive in global export markets.
- Financing: Large-scale production requires substantial capital investment from both the public and private sectors.
- Risk-mitigating mechanisms and policy stability are essential to sustain investor confidence.
Conclusion
Sustained policy support, technological advancement, and robust regulatory frameworks will be crucial to realise the full potential of Green Ammonia.
24 Feb 2026
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