NTPC Unit Signs 70,000 MTPA Green Ammonia Pact with SECI

Introduction

NTPC Renewable Energy Ltd. (NTPC REL), a wholly-owned subsidiary of NTPC Green Energy Ltd., has formalized a significant agreement for the supply of green ammonia. The company signed a Green Ammonia Purchase Agreement (GAPA) with the Solar Energy Corporation of India (SECI) on March 30, 2026. This pact is a crucial development under the Indian government's National Green Hydrogen Mission, aimed at fostering a clean energy ecosystem. The agreement solidifies NTPC's position in the emerging green hydrogen and derivatives market, reinforcing its commitment to India's decarbonization goals.

Details of the Supply Agreement

Under the terms of the agreement, NTPC REL will supply 70,000 metric tonnes per annum (MTPA) of green ammonia. The recipient of this supply is Krishna Phoschem Limited, a company based in Meghnagar, Madhya Pradesh. SECI is acting as the intermediary procurer in this arrangement, facilitating the transaction between the producer and the end-user. The contract specifies a supply duration of ten years, ensuring a long-term offtake for NTPC REL's production facility. This structure provides stability for the project and guarantees a consistent supply of green ammonia for industrial use, primarily in the fertilizer sector.

A Landmark Auction and Record-Low Pricing

The foundation for this agreement was laid during an e-reverse auction conducted by SECI on August 4, 2025. NTPC REL successfully bid for the entire 70,000 MTPA capacity tendered in this specific auction. The winning bid was secured at a price of ₹51.80 per kilogram. This price point is a significant milestone for the industry, marking the lowest discovered price for green ammonia in India to date. It translates to approximately $191 per metric tonne, a substantial reduction from the previously discovered price of $141 per metric tonne in similar tenders. This cost reduction is a clear indicator of the increasing economic viability and competitiveness of green ammonia production in the country.

Contractual Obligations and Project Development

As part of the agreement, NTPC REL is responsible for establishing the necessary production facilities to generate the contracted volume of green ammonia. This includes securing all required land, permits, and regulatory approvals for the plant. The company must also manage the entire value chain, from production and storage to the final delivery of the green ammonia to Krishna Phoschem's facility. This end-to-end responsibility highlights the comprehensive capabilities NTPC is developing in the green chemicals space. The project is part of a larger SECI tender aimed at procuring a total of 7.24 lakh MTPA of green ammonia across 13 different locations nationwide.

Key Contractual Details

Strategic Alignment with National Goals

This agreement is directly linked to the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme, a cornerstone of India's National Green Hydrogen Mission. Launched in 2023, the mission aims to make India a global hub for the production, use, and export of green hydrogen and its derivatives. The SIGHT scheme provides incentives to support the development of a domestic manufacturing base and reduce the cost of green hydrogen production. By participating in this scheme, NTPC is not only expanding its business portfolio but also actively contributing to the nation's decarbonization targets and energy security objectives.

NTPC's Vision for a Green Chemical Hub

The green ammonia project is a key component of NTPC's broader strategy to become a leader in green chemicals. The company, through its subsidiary NGEL, is developing large-scale infrastructure to support this ambition. A flagship project is the Pudimadaka Green Hydrogen Hub near Visakhapatnam, which is planned to produce approximately 2.5 million tonnes per annum of green chemicals. This includes green ammonia, green methanol, and sustainable aviation fuel (SAF). This strategic pivot positions NTPC to become a foundational supplier of zero-carbon chemicals for various industries, supporting India's transition away from fossil fuel-based feedstocks.

Market Implications and Future Outlook

The record-low price achieved in the SECI auction sends a strong positive signal to the market. It demonstrates that with scale and policy support, the cost of green ammonia can become competitive with conventional, carbon-intensive production methods. This is expected to drive greater adoption by industrial offtakers, particularly in sectors like fertilizers and chemicals, which are significant sources of carbon emissions. The success of this tender is likely to encourage further investment in the green hydrogen ecosystem, from renewable energy generation to electrolyzer manufacturing and storage infrastructure. For NTPC, this agreement marks a critical step in building its green ammonia business and reinforces its commitment to leading India's energy transition.