NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Ltd., and Assago Industries Pvt. Ltd. signed a strategic MoU to develop and operationalise India’s first large-scale Green Urea production ecosystem at the upcoming Pudimadaka Green Hydrogen Hub in Andhra Pradesh.
Key highlights of MoU
- NGEL will supply green ammonia, captured CO₂, renewable energy (RE) power and utilities.
- Assago Industries will use these clean feedstocks to manufacture green urea.
- The collaboration aims to build a domestic green urea value chain, aligned with Atmanirbhar Bharat and India’s clean energy transition.
India’s Urea challenge and Why this project matters
- Annual urea consumption: ~35–40 million tonnes.
- Imports: ~8–10 million tonnes per year.
- Problems with imports:
- High price volatility
- Foreign exchange outflow
- Geopolitical supply risks
- Dependence on carbon-intensive, fossil fuel–based ammonia
The NGEL–Assago project directly addresses these issues by creating India’s first indigenous green urea ecosystem powered entirely by renewable hydrogen and green ammonia.
Objectives of initiative
- Produce green urea using green hydrogen and renewable energy, replacing fossil fuel–based ammonia.
- Reduce dependence on imported fertilizers.
- Create jobs, strengthen the green energy sector, and support industrial development in Andhra Pradesh.
Pudimadaka Green Hydrogen Hub: scale and scope
- Designed capacity: 2.5 million tonnes per annum (MMTPA) of green chemicals.
- Products planned:
- Green Methanol
- Green Ammonia
- Sustainable Aviation Fuel (SAF)
- Green Urea
Assago Industries will be among the first private players in India to produce green urea at scale using renewable ammonia and captured CO₂, making this a pioneering project in sustainable fertilizer manufacturing.
Strategic benefits of NGEL–Assago collaboration
- Strengthening fertilizer self-reliance: Cuts import dependence.
- Large-scale decarbonisation: Lowers emissions from one of India’s most carbon-intensive sectors.
- Boost to Andhra Pradesh’s Green Hydrogen Corridor: Positions the state as a green manufacturing hub.
- Alignment with national priorities:
- National Green Hydrogen Mission
- Net Zero by 2070
- Atmanirbhar Bharat
Environmental and innovation significance
Environmental impact:
- Significant reduction in carbon emissions compared to conventional urea plants.
- Supports India’s Net Zero 2070 commitment.
- Reduces import dependence on conventional urea
- Strengthens energy–fertiliser sector integration
- Aligns with Aatmanirbhar Bharat and Net Zero goals
- Positions Andhra Pradesh as a green industrial hub
Innovation:
- First-of-its-kind indigenous green urea technology in India.
- Promotes self-reliance in fertilizer production using clean energy.
What is green urea?
- Green urea is urea produced using:
- Green hydrogen (from renewable electricity via electrolysis)
- Green ammonia (ammonia made from green hydrogen, not natural gas)
- Captured CO₂ instead of fossil-based CO₂
- How it differs from conventional urea:
- Conventional urea uses grey hydrogen derived from natural gas, making it highly carbon-intensive.
- Green urea eliminates fossil fuel use, sharply reducing emissions.
- Why it is important:
- Decarbonises fertilizer production
- Reduces import dependence
- Enhances energy and food security