NTPC: $591 per ton for renewable ammonia in India

Hot on the heels of the announcement of ACME’s successful bid, NTPC Renewable Energy has been announced as the second winner in a series of renewable ammonia reverse auctions to be facilitated by the Solar Energy Corporation of India. NTPC will supply 70,000 tons per year of renewable ammonia to Krishana Phoschem Limited in Meghnagar, Madhya Pradesh over a ten-year fixed contract. The fixed delivery price of ₹51.8/kg translates to approximately $591 per ton, a substantial drop from the winning bid ($1,153 per ton) in H2Global’s pilot ammonia auction finalised last year, and lower than the “record-breaking” bid from ACME ($640 per ton) in last week’s announcement.

NTPC is an Indian state-owned, integrated power company, and is involved in a series of renewable ammonia production partnerships:

• it will provide “round-the-clock” renewable electricity feedstock for AM Green’s Kakinada mega-project

• has an MoU with the state of Maharashtra for the development of one million tons per year production capacity of renewable hydrogen derivatives

• has project development MoUs for “captive use” plants signed with National Fertilizers Limited (50 tons ammonia per day), and Gujarat Alkalies and Chemicals Limited (35 tons ammonia per day)

• and a development MoU for an ammonia and methanol fuel hub (plus potential exports) with V.O Chidambaranar Port Authority in Tuticorin

• While it’s unclear which exact future production site NTPC’s renewable ammonia will come from, its development agreement with the state of Maharashtra likely places renewable ammonia production in the neighboring state to Krishana Phoschem’s manufacturing site in Madhya Pradesh.

Thanks to the vision of MNRE, the support of the Department of Fertilizers, and the steadfast support of offtakers like Krishana Phoschem Limited, SECI is proudly delivering results that nobody saw coming.