Green ammonia plant
- 10+ Years of Experience
- 400 + In-House CAs, CS & Lawyers
- 99% SLA Delivery
- 10,000+ Pin codes Network in India
1000+
Happy Clients500+
Expert Advisors10+
Years of Experience
Rated 4.9 By 10,000+ Customers.
10K+ Global Brands That Trust Us!
Talk to an Expert
Expertise in GREEN AMMONIA PLANT
(5)
Enquiry Form
Among Asia Top 100
Consulting Firm
Get Consultation
Lowest Fees
1000 + Clients.
Green Ammonia Plant Setup - An Overview
If you are aiming to generate CO2-free energy and transition to net-zero carbon dioxide emissions, setting up a green ammonia plant is a significant step forward.
In India, the demand for green ammonia is increasing as the nation works towards reducing its carbon footprint and fulfilling its commitments under the Paris Agreement. Government incentives and subsidies play a crucial role in encouraging green ammonia projects, with policies focused on increasing the share of renewable energy and minimizing greenhouse gas emissions.
This presents a great opportunity for private investors and businesses to participate in India’s green energy transition while benefiting from the rising demand for green ammonia.
Concerned about setting up a green ammonia plant in India? Consult with our experts today and secure a green ammonia plant license. Position yourself in the rapidly expanding green ammonia market, expected to grow at a CAGR of 117.3% from 2024 to 2030.
Types of
Ammonia
Below are
the different types of ammonia:
1. Green Ammonia: This type of ammonia is produced using renewable energy through electrolysis, with green hydrogen as the primary component. It is also known as renewable ammonia. Unlike conventional ammonia, which is derived from natural gas and results in significant greenhouse gas emissions, green ammonia is produced sustainably using renewable energy, making it an environmentally friendly alternative.
2. Grey Ammonia: This ammonia is produced from a combination of hydrogen and nitrogen. However, the hydrogen used in its production is sourced from fossil fuels such as natural gas, petroleum, or coal, making it less sustainable than green ammonia.
Benefits
of a Green Ammonia Plant Setup in India
The
advantages of setting up a green ammonia plant in India include:
1. Cost-Effective Setup: Modular and containerized designs lower investment and operational costs by reducing the need for extensive infrastructure or on-site construction.
2. Accelerated Deployment: Pre-fabricated equipment enables faster installation and commissioning, allowing production to start within approximately 8 months.
3. Space-Saving Design: Compact systems require minimal land, with a single unit occupying about 30 square meters, making it ideal for areas with limited space.
4. Sustainability: Green ammonia plants use renewable energy sources, contributing to India’s transition towards cleaner and more sustainable energy solutions.
5. Energy Independence: Setting up a green ammonia plant reduces reliance on fossil fuels and aligns with India’s objectives for self-sufficiency in clean energy production.
6. Lower Carbon Emissions: Green ammonia helps power engines and generate electricity with only water and nitrogen as byproducts, significantly cutting down dependence on carbon-based fuels.
7. Efficient Hydrogen Carrier: Green ammonia serves as a stable medium for hydrogen storage and transportation, solving logistical issues in various industries.
8. Ease of Storage: Green ammonia can be stored at pressures between 10–15 bar or at a temperature of -33°C, making it compatible with existing storage and transport infrastructure.
9. Export Opportunities: India aims to capture 10% of the global market, potentially exporting up to 10 million metric tons of green hydrogen or green ammonia annually.
Challenges
in Green Ammonia Plant Setup in India
Setting
up a green ammonia plant in India comes with the following challenges:
1. Regulatory Challenges: Compliance with various regulatory requirements, including non-uniformity in green product specifications and challenges in cross-border trade.
2. Project Challenges: Availability of essential resources like land, water, reliable power supply, storage, and logistics infrastructure.
3. Commercial Challenges: The market pricing of green ammonia and competition from blue or grey ammonia may present financial challenges.
4. Financial Challenges: Investors' and lenders' concerns about entering a relatively new sector.
5. End-Use Applications: Market adoption remains price-sensitive, requiring greater awareness and industry coverage.
Green
Ammonia Plant License and Permits in India
The
following permits and approvals are required to establish a green ammonia plant
in India:
1. Environmental and Regulatory Clearances: Includes Pollution NOC, waste management approvals, and groundwater usage permits from the Ministry of Environment, Forest, and Climate Change.
2. Industrial Licenses: Required for handling hazardous chemicals, issued by the Department for Promotion of Industry and Internal Trade (DPIIT).
3. Land Use Permits: Proof of land ownership or lease agreements, along with permission from relevant authorities to establish the plant.
4. Building Permits: Includes structural and fire safety certificates from municipal bodies to ensure compliance and smooth operations.
5. Electricity Permits: Proper electricity connections and approvals from state electricity boards to access government electricity benefits.
6. Pollution Control Permits: Approvals from central and state pollution control boards for emissions management.
7. Tax Registrations: Essential tax permits such as GST, TDS, and PAN registration to ensure regulatory compliance.
Government
Policy for Green Ammonia Plant Setup in India
Under the
National Green Hydrogen Mission, the Indian government has introduced key
policies to promote green ammonia plant setups, including:
1. Manufacturers can procure renewable power from any source nationwide.
2. Open access to renewable energy will be granted within 15 days of application.
3. Renewable power storage is allowed for up to 30 days for later use.
4. Distribution licenses will enable procurement or supply of renewable energy at regulated costs.
5. Transmission charges for green ammonia plants commissioned before June 30, 2025, will be waived for 25 years.
6. Priority grid connections will be provided to minimize procedural delays.
7. The government will enforce Renewable Purchase Obligations for green ammonia manufacturers.
8. A centralized portal by the Ministry of New and Renewable Energy will facilitate statutory clearances.
9. Land for export-oriented ammonia bunkers will be allocated near ports by port authorities.
How Much
Does Green Ammonia Plant Setup Cost?
According
to the International Renewable Energy Agency (IRENA), the cost of green ammonia
production ranges between $720-1,400 per ton (60,900rs to 118,600rs per metric
ton).
Some
recent green ammonia plant projects in India include:
1. A green ammonia plant in Prayagraj set up at a cost of 22,500 crore rupees.
2. Avaada Group signing an MoU for a 40,000 crore rupees green ammonia plant in Rajasthan’s Kota district.
3. A proposed green ammonia plant in Jagatsinghpur municipality valued at 124.8 billion rupees.
Why
Choose Fastzeal for Green Ammonia Plant Setup?
Fastzeal
provides end-to-end assistance in establishing green ammonia plants in India,
facilitating a seamless transition to sustainable energy solutions. Here’s why
green energy entrepreneurs trust Fastzeal:
1. Expert consultation for handling green ammonia projects in India.
2. Over a decade of experience assisting green energy entrepreneurs.
3. A network of 200+ environmental consultants ensuring smooth processes.
4. Managing 10+ green ammonia projects worldwide.
5. Comprehensive regulatory compliance support for green ammonia plant setup in India.
6. Assistance in securing online green ammonia plant registration.
7. Enabled over 5000 crore rupees in investments with strong ROI models and funding support.
8. Recognized as a leader in green ammonia consulting to secure plant licenses.
9. Conducting feasibility studies to assess project viability.
10. Facilitating partnerships with technology providers and equipment manufacturers for seamless plant registration.
Frequently Asked Questions:
The green ammonia is dependent on renewable energy and it derives its hydrogen from water and its nitrogen from the air. However, the ammonia production cost is typically more expensive, but now it's becoming cheaper with the decreasing cost of renewable energy.
Ammonia is a chemical compound formed with nitrogen and hydrogen. Green ammonia is a type of ammonia that is renewable and carbon-free.
A green ammonia plant setup typically comprises a renewable energy source, an electrolyser for hydrogen production, a synthesis unit for ammonia production, and storage and handling facilities for the final product.
Some of the substantial merits of green ammonia plant setup in India are reduced carbon emissions, increased energy supply security, location flexibility, versatile applications, and much more.
Green ammonia manufacturers will be given priority access to the Inter-State Transmission System at no cost for the first 25 years, provided they start operations before June 2025.
The government is incentivizing green ammonia manufacturers to support its goal of producing 1 to 5 million metric tonnes of green hydrogen by 2030, as outlined in the National Hydrogen Mission.
Green ammonia is essential for several reasons:
1. It serves as a clean and sustainable fuel.
2. Reduces dependence on fossil fuels in the future.
3. Helps the country meet its international commitments on climate change.
4. Promotes the transition to cleaner energy sources for a sustainable future.
Renewable Purchase Obligation (RPO) requires certain entities to buy a specific amount of electricity from renewable sources. Green ammonia manufacturers benefit from this by receiving a distribution license, allowing them to access renewable energy under the RPO framework.
The production of green ammonia could offer healthy options in the transition to net-zero carbon dioxide emissions. A compounded annual growth rate of 117.3% is anticipated of India’s Green Ammonia market from 2024 to 2030.
The raw materials for ammonia are nitrogen and hydrogen gas. Hydrogen is obtained by reacting natural gas with steam. On the other hand, nitrogen is extracted from the atmosphere through air separation.
Ammonia (NH3) is a nitrogen and hydrogen-based chemical compound, produced biologically in a process called nitrogen fixation, but even more is generated industrially by the Haber process. This process has revolutionized agriculture by providing cheap fertilizers as it is widely used in the production of fertilisers and industrial chemicals.
The Government of India on 75th Independence Day has launched a National Green Hydrogen Mission with an objective to aid the government in meeting the climate targets and making India a green hydrogen hub. Ammonia is considered to be the future fuel to replace fossil fuels.
This kind of fuel produced by using power from renewable energy is one of the major requirements for sustainable environmental energy. Therefore, this is one way how the government of India is taking the initiative to facilitate the transition from fossil fuel feedstocks to green hydrogen.
The raw materials for ammonia are nitrogen and hydrogen gas. Hydrogen is obtained by reacting natural gas with steam. On the other hand, nitrogen is extracted from the atmosphere through air separation.
