Green ammonia supply agreements link SECI, Acme Cleantech, IFFCO, and Coromandel in India

Five companies, including Acme Cleantec and NTPC Renewable Energy, signed 10-year binding deals on Monday. The agreements cover 6.7 lakh tonnes of green ammonia for fertiliser makers. Buyers include IFFCO and Coromandel International. The move gains attention as the West Asia crisis disrupts energy imports. The supply is linked to fertiliser units across India.

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The Solar Energy Corporation of India, or SECI, coordinated the procurement and allocations. SECI allotted about 7.24 lakh tonnes per annum capacity to selected developers. The linked supply serves 13 fertiliser units. An official statement said Acme Cleantec signed a Green Ammonia Purchase Agreement, or GAPA. The agreement covers 3,70,000 tonnes per annum of green ammonia.

Green ammonia prices and bidding range

The bidding process found a lowest green ammonia price near Rs 49.75 per kg. The overall discovered range was about Rs 49.75 to Rs 64.74 per kg. Internationally found prices were about Euro 1000 per tonne. That equals around Rs 110 per kg. The comparison suggests the India prices align with global benchmarks.

Acme Cleantech agreed to supply IFFCO units at two different rates. The company will send one lakh tonne each to IFFCO Paradeep, Odisha, at Rs 49.75 per kg. Another one lakh tonne will go to IFFCO Kandla, Gujarat, at Rs 54.73 per kg. These supplies form part of Acme’s 10-year binding GAPA under SECI.

Acme Cleantech also committed volumes for Paradeep Phosphates Ltd plants. The company will supply 75,000 TPA to PPL’s Paradeep plant at Rs 55.75 per kg. Another 25,000 TPA will go to PPL’s Zuarinagar, Goa, plant at Rs 62.84 per kg. These rates fall within the discovered national range.

Further, Acme Cleantech will supply Coromandel International’s Vishakhapatnam unit. The volume is 50,000 TPA at a price of Rs 51.89 per kg. Acme will also supply 20,000 TPA to Indorama India Private Ltd’s Haldia, West Bengal, plant. The price for Haldia is Rs 64.74 per kg.

Green ammonia supply to Coromandel International and Ostwals units

Jackson Green & OCIOR will supply Coromandel International’s Kakinada, Andhra Pradesh, plant. The agreed volume is 85,000 TPA at Rs 50.75 per kg. Separate supply deals support Ostwals group units. NTPC Renewable Energy will supply 70,000 TPA to Ostwals Krishna Phoschem Ltd, Meghnagar, Madhya Pradesh, at Rs 51.80 per kg.

Oriana Power will supply 60,000 TPA to Ostwals Madhya Bharat Agro Products Ltd-II. The plant is located in Sagar, Madhya Pradesh. The price is Rs 52.25 per kg. SCC Infrastructure Ltd will supply 70,000 TPA to Ostwals Madhya Bharat Agro Products Ltd-III. The Dhule, Maharashtra, plant price is Rs 53.05 per kg.

SCC Infrastructure Pvt Ltd also secured a smaller allocation for Paradeep Phosphates Ltd. The company will supply 15,000 TPA to PPL’s Mangalore plant. The price is Rs 57.65 per kg. Together, these allocations add to the wider SECI-linked supply network. The network covers multiple fertiliser units in different states.

Green ammonia and energy security under National Green Hydrogen Mission

New & Renewable Energy Minister Pralhad Joshi linked the contracts to import savings. Joshi said replacing imported grey ammonia in non-urea fertiliser units will help. The initiative is expected to save nearly USD 2.5 billion over a decade. The statement came as the West Asia crisis raised concern over shipments and supply risks.

The minister further stated, This also points to a larger priority for India. Given what is happening in the world today, we have to move towards energy security and resilient supply chains, especially in sectors where we remain dependent on imports of natural gas and ammonia. Green hydrogen and green ammonia are central to this effort of Aatmanirbharta. In refineries, he explained that natural gas is currently used to produce grey hydrogen at a significant scale.Under the National Green Hydrogen Mission, we have set a target for green hydrogen adoption, he added.

The agreements set prices and volumes for a 10-year period across several plants. SECI’s process linked developers and fertiliser units through long-term supply obligations. The discovered price range remained below reported overseas levels. The contracts also fit into efforts to replace imported inputs. They aim to reduce exposure to global disruptions affecting energy and chemicals trade.

With inputs from PTI