Bhilwara / October 2025 — Green ammonia is moving from policy talk to commercial supply chains. Krishana Phoschem’s recent win of 70,000 MTPA under SECI’s SIGHT scheme — a 10-year allocation via the NTPC bid — shows how the fertilizer sector is locking long-term, low-carbon feedstock. This shift could reshape input security, costs and sustainability for Indian phosphatic fertilizer makers.
What is green ammonia — in brief
Green ammonia is ammonia produced using renewable electricity to make hydrogen (usually by electrolysis), then combining it with nitrogen. The process cuts greenhouse-gas emissions compared with conventional, fossil-fuel based routes. In fertilizer value chains, green ammonia acts as a cleaner feedstock for downstream products.
Krishana Phoschem Green ammonia, 70,000 MTPA deal is significant
Long-term feed security: A 10-year supply contract gives Krishana predictable ammonia volumes. This reduces exposure to volatile global ammonia markets and import bottlenecks.
Decarbonisation push: Access to green ammonia lets Krishana lower the carbon intensity of its phosphate fertilisers. That supports regulatory goals and investor ESG expectations.
Cost and margin stability: While green ammonia currently carries a premium, long-term contracts and scale can smooth price swings and protect margins versus spot imports.
Strategic fit with backward integration: Coupled with in-house sulphuric and phosphoric acid capacity, secured ammonia strengthens Krishana’s integrated supply chain.
Practical benefits and downstream impact
Green ammonia supply can help fertilizer makers:
Maintain steady production during global supply disruptions.
Potentially command price advantage in markets that value low-carbon inputs.
Reduce overall lifecycle emissions of fertiliser products — useful for buyers seeking sustainability credentials.
Key execution risks to watch
Timely deliveries and logistics: Seamless port and inland logistics are critical for ammonia offtake.
Price dynamics: The premium gap between green and conventional ammonia will matter for margins until scale and technology lower costs.
Certification & tracking: Buyers will need clear documentation that the ammonia is ‘green’ (renewable energy attribution, guarantees of origin).
Integration readiness: Plant modifications, storage and handling for new ammonia supply must be ready when shipments begin.
What this means for the Indian fertilizer sector
Krishana’s allocation under SECI’s SIGHT scheme is an early indicator that large fertilizer players will increasingly pursue contracted green feedstock. Over time, such deals can reduce import dependence, help firms meet net-zero targets, and encourage domestic investment in renewables and electrolyser capacity.
Outlook — the next 12 months
Watch for three things:
Offtake performance — whether scheduled deliveries meet volumes and timelines.
Price pass-through — how effectively companies translate green-ammonia cost into product pricing or margin improvements.
Operational ramp — readiness at plants to use the new feedstock without disrupting production.
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