NTPC Green Energy to participate in SIGHT scheme to supply green ammonia

NTPC Ltd, through subsidiary NTPC Green Energy, may look to participate in the SIGHT scheme to supply green ammonia from its ambitious Pudimadaka green hydrogen hub, particularly to the fertiliser plants of Coromandel International Ltd and Madras Fertilisers Ltd which are in proximity to the facility.

The green energy company may supply up to 150,000 tonnes of green ammonia produced at the hub in Andhra Pradesh to four nearby units of the two companies, people aware of the development. NTPC Green’s hub will produce 1,500 tonnes of green hydrogen and 4,500 tonnes of green ammonia per day, apart from green methanol and sustainable aviation fuel. Proximity of the hydrogen hub to the fertiliser plants may be beneficial in the supply, one of the people said.

The government issued a tender for green ammonia production incentives in June, and the last date to submit bids is January 2. The timeline may be extended to January 31, another person said. Under the National Green Hydrogen Mission’s SIGHT (Strategic Interventions for Green Hydrogen Transition) scheme Mode-2A, tranche I, the government has listed 14 fertiliser projects that will be signing agreements with the successful bidders. Bids are called for providing incentives for the supply of 539,000 tonnes a year. Coromandel International’s units in Visakhapatnam, Kakinada and Chennai, and Madras Fertilisers’ Chennai facility are among the 14 projects.

Fertiliser producers are one of the major consumers of ammonia and attempts are being made for the companies to switch to the green option, which is costlier than grey ammonia. India consumes 17-19 million tonnes per year of ammonia for the production of urea, diammonium phosphate and other complex fertilisers, a report from the Council on Energy, Environment and Water said.