ACME Signs Rs 20,000 Crore Green Ammonia Deal with SECI

ACME Group has entered into a Rs 20,000 crore green ammonia deal with SECI, marking a major step in India’s clean energy transition and its push toward sustainable fertiliser production.

The long-term agreement, spread over 10 years, will see ACME supply around 3,70,000 tonnes of green ammonia annually. This initiative is part of the government’s SIGHT programme, which aims to boost domestic production of green hydrogen and its derivatives while reducing reliance on imported fossil fuels.

To support this deal, ACME plans to set up a green ammonia production facility in Odisha. The plant will use renewable energy sources to produce ammonia, making the process significantly cleaner compared to conventional methods that rely on natural gas. The produced green ammonia will be supplied to the fertilizer sector, ensuring steady demand and encouraging further investments in clean energy infrastructure.

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SECI, acting as an intermediary, has already tied up with major fertiliser companies such as IFFCO, Paradeep Phosphates, India Potash, and Coromandel International. These companies will use green ammonia as a cleaner alternative to conventional ammonia in fertiliser production.

The move is expected to strengthen India’s energy security while also reducing carbon emissions from one of its most energy-intensive sectors. By replacing imported grey ammonia with locally produced green ammonia, the country could also reduce its import bill over time.

The pricing for green ammonia under the SIGHT scheme has been discovered through competitive bidding and is considered relatively affordable compared to global benchmarks. This could help drive wider adoption in the fertilizer industry, although questions remain about long-term cost sustainability once government incentives are reduced.

"This agreement, result of a bold vision by the Government of India to usher-in energy security to India's fertiliser sector, represents a defining step in demonstrating commercial-scale green ammonia production and offtake viability at a competitive cost. It reaffirms our commitment to accelerating India's journey towards energy independence and net-zero emissions," said Anil Taparia, Chief Operating Officer of ACME Green Hydrogen and Ammonia Business.

While the agreement highlights strong policy support and growing private sector participation, challenges such as infrastructure development, financing, and supply chain integration will play a crucial role in determining its success.