New Delhi, March 30 Five companies, including Acme Cleantec and NTPC Renewable Energy, signed a 10-year binding agreement on Monday to supply 6.7 lakh tonnes of green ammonia to fertilizer companies like IFFCO and Coromandel International.
This development is significant amid the West Asia crisis, when energy imports to the country are hampered due to conflict.
Acme Cleantec signed a 10-year binding Green Ammonia Purchase Agreement (GAPA) with the Solar Energy Corporation of India (SECI) for a capacity of 3,70,000 tonnes per annum (TPA) of green ammonia, an official statement said.
Acme Cleantech will supply one lakh tonnes of green ammonia each to Indian Farmers Fertilisers Cooperative Ltd's (IFFCO) Paradeep, Odisha (at a price of Rs 49.75 per kg) and Kandla, Gujarat (at a price of Rs 54.73 per kg).
Similarly, the company will supply 75,000 TPA to Paradeep Phosphates Ltd's (PPL) Paradeep Plant (at a price of Rs 55.75 per kg) and 25,000 TPA to its Zuarinagar, Goa, plant (at a price of Rs 62.84 per kg).
It will supply 50,000 TPA to Coromandel International's Vishakhapatnam plant (at a price of Rs 51.89 per kg) and 20,000 TPA to Indorama India Private Ltd's Haldia, West Bengal, plant (at a price of Rs 64.74 per kg).
Jackson Green & OCIOR will supply 85,000 TPA to Coromandel International's Kakinada, Andhra Pradesh, plant (at a price of Rs 50.75 per kg).
NTPC Renewable Energy will supply 70,000 TPA to Ostwal's Krishna Phoschem Ltd, Meghnagar, Madhya Pradesh, plant (at a price of Rs 51.80 per kg).
Oriana Power will supply 60,000 TPA to Ostwal's Madhya Bharat Agro Products Ltd-II, Sagar, Madhya Pradesh plant (at a price of Rs 52.25 per kg).
SCC Infrastructure Ltd will supply 70,000 TPA to Ostwal's Madhya Bharat Agro Products Ltd-III, Dhule, Maharashtra plant (at a price of Rs 53.05 per kg).
SCC Infrastructure Pvt Ltd will supply 15,000 TPA to PPL's Mangalore plant (at a price of Rs 57.65 per kg).
The bidding process has led to the discovery of competitive green ammonia prices, with the lowest discovered price of approximately Rs 49.75 per kg and an overall discovered price range of about Rs 49.75 to Rs 64.74 per kg.
In comparison, internationally discovered prices have been reported at about Euro 1000 per tonne (around Rs 110 per kg), indicating that the prices discovered in India are competitive with global benchmarks.
Through this process, SECI has allocated a total capacity of approximately 7.24 lakh TPA to selected developers, with supply linked to 13 fertilizer units across the country.
On this occasion, New & Renewable Energy Minister Pralhad Joshi said that by replacing imported grey ammonia in non-urea fertilizer units, this initiative will save India nearly USD 2.5 billion in foreign exchange over the next decade.
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.
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