NTPC REL and SECI Finalize Purchase Agreement for 70,000 MTPA of Green Ammonia

April 2, 2026 By Gaurav Nathani 3 min read
0:00 / 02:41

Execution of the Green Ammonia Purchase Agreement (GAPA)

In a milestone execution under the National Green Hydrogen Mission, NTPC Renewable Energy Limited (NTPC REL) signed a Green Ammonia Purchase Agreement (GAPA) with the Solar Energy Corporation of India (SECI) on March 30, 2026. This agreement represents the first-of-its-kind supply arrangement under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. NTPC REL, a wholly owned subsidiary of NTPC Green Energy Limited (NGEL), will supply green ammonia to an industrial offtaker through this government-backed framework, facilitating the integration of zero-carbon chemicals into the domestic industrial supply chain.

Technical Specifications and Delivery Logistics

The GAPA establishes rigorous parameters for the annual volume and physical delivery of green ammonia. As defined in the contract, SECI functions as the intermediary procurer, bridging the gap between the producer (NTPC REL) and the specified fertilizer industry offtaker.

  • Annual Supply Volume: 70,000 metric tonnes per annum (MTPA).
  • Primary End-User: Krishna Phoschem Limited.
  • Delivery Location: Meghnagar, Madhya Pradesh.
  • Intermediary Procurer: Solar Energy Corporation of India (SECI).

Regulatory Framework: The National Green Hydrogen Mission

This agreement is governed by the SIGHT Scheme, specifically categorized as Mode-2A, which utilizes a Cost-Based Competitive Bidding framework. The contract aligns with the National Green Hydrogen Mission (NGHM) and its objectives to meet the Government of India’s decarbonization targets for hard-to-abate sectors. NTPC REL secured this capacity through a competitive selection process managed by SECI, which involved comprehensive techno-commercial and financial evaluations of various bidders.

Financial and Auction Context

The economic parameters of the agreement were finalized during an e-reverse auction conducted in August 2025. SECI has identified the winning bid as the lowest discovered price for green ammonia to date, establishing a new benchmark for the sector as of the March 2026 signing.

Auction and Pricing Data

MetricDetail
Winning Bid Price₹51.80 per kilogram
Auction TypeE-reverse auction
Auction DateAugust 2025

Corporate and Project Background

NTPC REL is the dedicated renewable energy vehicle of NTPC Green Energy Limited (NGEL). This agreement is a core component of NGEL’s strategic pivot into green-hydrogen-based chemicals, positioning the company as a foundational “green chemical” supplier for the Indian energy transition.

As of March 2026, NGEL maintains an operational scale of approximately 9,907 MW in installed renewable energy capacity. The company’s production ambitions are anchored by the Pudimadaka Green Hydrogen Hub in Visakhapatnam. This flagship infrastructure project is planned to produce approximately 2.5 million tonnes per annum (MMTPA) of green chemicals, including green ammonia, green urea, methanol, and sustainable aviation fuel (SAF).

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