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NTPC Green Energy Limited and Assago Industries have signed an MoU to develop India's first large-scale green urea production facility at the Pudimadaka Green Hydrogen Hub in Andhra Pradesh. NGEL will supply green ammonia, renewable power and CO to support clean urea manufacturing. The project targets reducing India's dependence on imported urea, which currently stands at 8-10 million tonnes annually. Designed within a 2.5 million tonnes per annum green chemicals hub, the initiative supports fertiliser self-reliance, decarbonisation and the national clean energy agenda.
NTPC Green Energy Limited (NGEL), a wholly owned subsidiary of NTPC Ltd., and Assago Industries Private Limited have entered into a strategic memorandum of understanding to set up India's first large-scale green urea production ecosystem at the proposed Green Hydrogen Hub in Pudimadaka, Andhra Pradesh. The agreement was formalised in the past week and marks a significant step towards cleaner fertiliser manufacturing in the country. Advertisement
As part of the arrangement, NGEL will supply green ammonia, captured CO, renewable energy power and essential utilities to Assago. These inputs will be used to produce green urea entirely through renewable and low-carbon feedstock. The project is expected to support India's broader objective of reducing dependence on conventional, fossil fuel-based fertilisers.
India consumes nearly 35-40 million tonnes of urea every year, while around 8-10 million tonnes are imported annually. This reliance on imports exposes the country to global price fluctuations, foreign exchange pressure, supply uncertainties and higher carbon emissions. The NGEL Assago partnership aims to address these issues by establishing an indigenous green urea value chain powered by renewable hydrogen and green ammonia.
The Pudimadaka Green Hydrogen Hub has been planned with a total capacity of about 2.5 million tonnes per annum of green chemicals, including green methanol, green ammonia, sustainable aviation fuel and green urea. Within this framework, Assago Industries is expected to be among the first private companies in India to undertake green urea production at a commercial scale using renewable ammonia and captured carbon dioxide.
The collaboration is positioned to strengthen fertiliser self-reliance, support large-scale decarbonisation and reinforce Andhra Pradesh's emerging green hydrogen corridor. It also aligns with national priorities around clean energy transition, agricultural security and domestic manufacturing. Assago's management stated that the partnership reflects a long-term commitment to sustainable fertiliser production and building a globally competitive green chemicals ecosystem at Pudimadaka, in close coordination with NGEL.
Source PTI
FAQ
Q1. What is the significance of the MoU between NTPC Green Energy and Assago Industries?
The memorandum of understanding between NTPC Green Energy Limited (NGEL) and Assago Industries marks a major milestone in India's clean energy and fertiliser transition. It aims to establish the country's first large-scale green urea production facility at the Pudimadaka Green Hydrogen Hub in Andhra Pradesh. The project represents a shift away from fossil fuel-based fertiliser manufacturing towards renewable, low-carbon production, aligning with India's broader clean energy and self-reliance goals.
Q2. How will green urea be produced under this project?
Under the agreement, NGEL will supply green ammonia produced from renewable hydrogen, along with captured carbon dioxide, renewable power and essential utilities. These inputs will enable Assago Industries to manufacture urea using entirely green and low-carbon feedstock. This process significantly reduces carbon emissions compared to conventional urea production, which relies heavily on natural gas and other fossil fuels.
Q3. Why is green urea important for India's fertiliser sector?
India consumes around 35-40 million tonnes of urea annually, of which nearly 8-10 million tonnes are imported. This dependence exposes the country to global price volatility, foreign exchange outflows and supply disruptions. Green urea production within India can reduce import dependence, improve fertiliser security for farmers, and lower the environmental footprint of agriculture by cutting emissions associated with conventional fertiliser manufacturing.
Q4. What role does the Pudimadaka Green Hydrogen Hub play in this initiative?
The Pudimadaka Green Hydrogen Hub is planned as a large integrated green chemicals complex with a total capacity of about 2.5 million tonnes per annum. It is designed to host multiple green products such as green ammonia, green methanol, sustainable aviation fuel and green urea. The green urea project by NGEL and Assago will be an integral part of this ecosystem, leveraging shared infrastructure and renewable energy resources.
Q5. How does this project support decarbonisation and clean energy goals?
By using renewable hydrogen, green ammonia and captured CO, the project directly supports decarbonisation of one of the most emission-intensive segments of the fertiliser industry. It complements India's national green hydrogen mission and clean energy agenda by demonstrating how renewable power can be integrated into large-scale industrial applications, reducing reliance on fossil fuels and lowering overall emissions.
Q6. What broader impact could this collaboration have on Andhra Pradesh and India?
The project is expected to strengthen Andhra Pradesh's position as a key green hydrogen and green chemicals hub while supporting domestic manufacturing and employment. At the national level, it reinforces fertiliser self-reliance, promotes sustainable agriculture, and positions India as a potential global leader in green fertiliser production. The collaboration also sets a precedent for public private partnerships in scaling up clean industrial technologies.
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