Key Details
The proposed roadmap focuses not only on producing green urea but also on creating a commercially viable ecosystem by linking clean-energy production, carbon capture and fertilizer manufacturing through coordinated policy support.
Policy Element | Proposal | Why It Matters |
|---|---|---|
Green production pathway | Integrates green hydrogen, green ammonia and captured CO₂ into urea manufacturing | Creates a low-carbon alternative to conventional urea production |
Commercial viability | SECI will procure green ammonia and supply it to fertilizer companies at grey ammonia prices, with DoF bridging the cost difference | Protects manufacturers from higher transition costs |
Market development | Procurement of 7.24 lakh MT of green ammonia annually under the National Green Hydrogen Mission (Mode 2A) | Creates assured demand for green hydrogen-based products |
Investment certainty | Producer incentives backed by 10-year procurement agreements | Encourages private investment in green ammonia production |
Carbon utilisation | Captured CO₂ from thermal power, cement and steel plants proposed as feedstock | Links fertilizer production with industrial decarbonisation |
Long-term objective | Reduce import dependence while lowering emissions from fertilizer manufacturing | Supports fertilizer security and climate goals simultaneously |
Summary
Building a Commercial Model for Green Urea
The Department of Fertilizers has initiated consultations on establishing Green Urea Plants in India. The proposed roadmap seeks to solve the commercial challenge of producing low-carbon urea by integrating green hydrogen, green ammonia, captured carbon dioxide and targeted government support into a single production ecosystem.
Subsidies Aim to Bridge the Cost Gap
A major barrier is that green ammonia remains significantly more expensive than conventional grey ammonia. The proposed framework addresses this through an offtaker-side differential subsidy, under which SECI will procure green ammonia from producers and supply it to fertilizer manufacturers at prevailing grey ammonia prices, while the Department of Fertilizers reimburses the difference.
Alongside this, producers would receive long-term procurement certainty through competitive bidding and 10-year agreements, reducing investment risk for new green ammonia projects.
Carbon Capture Becomes Part of Fertilizer Policy
Although green hydrogen can decarbonise ammonia production, urea manufacturing still requires carbon dioxide. The roadmap therefore proposes using captured CO₂ from sectors such as thermal power, cement and steel, creating a productive use for industrial emissions while supporting lower-carbon fertilizer production. This positions the fertilizer sector as a potential anchor market for India’s emerging carbon capture ecosystem.
Connecting Energy Transition with Fertilizer Security
India imports around one crore tonnes of urea annually, while several domestic fertilizer plants are approaching the end of their operational life. By combining renewable energy, green hydrogen, carbon capture and long-term procurement mechanisms, the Government aims to expand domestic fertilizer production in a manner that strengthens fertilizer security, supports the National Green Hydrogen Mission, and advances industrial decarbonisation without increasing costs for fertilizer manufacturers.
What is Green Urea?
Green urea is urea produced using green ammonia, manufactured from renewable-energy-based hydrogen, together with captured carbon dioxide instead of conventional fossil-based inputs. The objective is to reduce greenhouse-gas emissions from fertilizer production while maintaining agricultural productivity.
Policy Relevance
Connects fertilizer policy, green hydrogen and carbon capture within a single industrial strategy.
Creates an anchor market for green ammonia under the National Green Hydrogen Mission.
Introduces a market-based subsidy mechanism to accelerate industrial decarbonisation without undermining commercial viability.
Opens new utilisation pathways for captured carbon dioxide from hard-to-abate industries.
Strengthens India’s long-term fertilizer security while reducing dependence on imported fossil-based inputs.
Illustrates how climate policy is increasingly being implemented through sector-specific industrial strategies rather than standalone environmental measures.
Relevant Question for Policy Stakeholders: Can India build a reliable supply chain for captured carbon dioxide at the scale required for green urea production, or will carbon availability become the limiting factor in expanding low-carbon fertilizer manufacturing?
Follow the Full News Here: Government Exploring Roadmap to Make Green Urea Production a Reality in INDIA