India’s NTPC will supply green hydrogen-based ammonia for the country’s first large-scale green urea plant

NTPC Green Energy (NGEL), a subsidiary of state-owned power producer NTPC, has signed a memorandum of understanding with Assago Industries to develop and operate India’s first large-scale indigenous green urea production facility at the upcoming Pudimadaka Green Hydrogen Hub in Andhra Pradesh.

The agreement, announced on February 3, brings together NGEL and Assago to establish a green urea value chain based entirely on renewable feedstocks. Under the MoU, NGEL will supply green ammonia, captured carbon dioxide, renewable energy, and other utilities required for production, while Assago will develop and operate the urea manufacturing unit.

The project is positioned as part of India’s broader push to localize fertilizer production and reduce reliance on imports. India consumes an estimated 35 to 40 million metric tons of urea annually and imports roughly 8 to 10 million tons each year, exposing the sector to price volatility, foreign exchange outflows, and supply disruptions, as well as a high carbon footprint.

According to the companies, the Pudimadaka hub is being planned with a capacity of around 2.5 million metric tons per year of green chemicals, including green ammonia, green methanol, sustainable aviation fuel, and green urea. Assago is expected to be among the first private companies to begin large-scale green urea production at the site, using renewable hydrogen-derived ammonia and captured CO₂.