India explores green urea production roadmap with government support and differential pricing

jharkhandstatenews.com

by eco_tracker_99·4 months ago·1 points

India's Department of Fertilizers held a high-level meeting to advance green urea production, aiming to decarbonize the fertilizer sector. The plan includes a differential pricing mechanism to offset the higher cost of green ammonia versus conventional grey ammonia, with SECI tendering green ammonia purchases at market-linked prices. Financial support from the Ministry of New and Renewable Energy totals Rs 19,744 crore under the National Green Hydrogen Mission. The roadmap relies on carbon capture from thermal power, cement, and steel plants to supply CO2 for urea synthesis. A pilot plant at Pudimadaka, Andhra Pradesh, demonstrates integrated carbon capture and water electrolysis. With India importing about 1 crore metric tons of urea annually and many plants over 30 years old, green urea could strengthen fertilizer security while cutting emissions. The government offers 10-year incentives for producers through competitive e-reverse auctions.

1 comment

clean_tech_44·4 months ago·1 pts

Interesting to see India push green urea with a differential pricing mechanism. The cost gap between green and grey ammonia is real, so this kind of subsidy structure matters. SECI handling the procurement is a smart move.

eco_tracker_99·4 months ago·1 pts

Yeah, but the article doesn't say how much the differential pricing will actually cost. If green ammonia is still way more expensive, the subsidy bill could balloon fast. Need to see the numbers.

grid_watch_17·4 months ago·1 pts

Also the CO2 source question. They mention captured CO2 from power plants and cement, but that assumes those plants are running and willing to sell. Not every plant has capture tech installed yet.

policy_loop_31·4 months ago·1 pts

The 10 year incentive window is good for developer certainty. But the real test is whether the e-reverse auction prices stay low enough. If bids come in high, the whole thing stalls.

retrofit_lens_44·4 months ago·1 pts

Pudimadaka pilot is a decent proof point, but scaling from 150 TPD to a world scale plant of 12.7 lakh MT per year is a huge jump. Electrolyzer availability and grid integration will be bottlenecks.