Context: India is one of the leading producers of agricultural products and pharmaceuticals. These two sectors account for the major chunk of usage of ammonia and its derivatives. However, the present production process of ammonia based on usage of fossil fuels is highly energy intensive, thereby contributing to greenhouse gas emissions. In this light, the Government of India has brought out the National Green Hydrogen Mission and Green Ammonia Policy to increase the production of Green Ammonia and reduce the carbon footprint of the ammonia's production process.
What is Ammonia?
Ammonia (NH3) is a nitrogen and hydrogen-based chemical compound widely used in the production of fertilisers and industrial chemicals.
Types:
- Grey Ammonia: Manufactured from synthesis of hydrogen and nitrogen gases. Hydrogen in turn is manufactured from fossil fuels viz natural gas, petroleum products and coal, natural gas remaining the dominant feed.
- Green Ammonia: Ammonia produced from renewable energy through the process of electrolysis is called green ammonia. The production process of green ammonia uses green hydrogen as a feedstock for producing ammonia. This is also called renewable ammonia.
Convention Production process of ammonia:
- Initially, processes like the Frank-Caro process, Birkeland-Eyde process were used.
- But these two processes were highly inefficient and a major breakthrough in ammonia production of industrial scale came through the Haber-Bosch process.
- India is the world's third-largest producer and second-largest importer of ammonia.
Schematic for Green Ammonia production process
- World's first Green Ammonia plant has been set up in Bikaner, Rajasthan by a private entity.
Benefits of Green Ammonia:
- Emission reductions: Green ammonia, being produced using renewable energy sources, does not emit carbon dioxide (CO₂) during its production and therefore its use will be key to reducing emissions in the so-called "hard to abate" sectors that currently use conventional ammonia produced from carbon-intensive natural gas. Thus, by replacing it with green ammonia, dependence on fossil fuels is reduced and greenhouse gas emissions are reduced, thus contributing to climate change mitigation.
- Increased energy supply security: Green ammonia reduces dependence on fossil fuels in general. By using renewable energy sources, green ammonia is produced from local resources and reduces current exposure to fossil fuel price volatility (required in conventional ammonia production).
- Energy vector or hydrogen carrier: While hydrogen liquefies at a temperature of -253°C, ammonia only requires cooling to -33°C. Liquefaction is necessary to transport and store these compounds. The lower cooling requirement for ammonia makes this process much more competitive and energy efficient than hydrogen transport. Thus, once the necessary infrastructure for import, storage and cracking of ammonia is developed, it will be possible to produce green hydrogen in locations with optimal conditions (competitive renewable energy) and then export it to other consuming regions.
- Contribution to renewable energy deployment: Meeting future demand for green ammonia will require large amounts of new renewable electricity to meet the requirements set by the EU Delegated Acts for the definition of hydrogen and renewable derivatives.
- Export benefits: Aiming at about 10% of the global market, India can potentially export about 10 MMT Green Hydrogen/Green Ammonia per annum.
- Climate smart agriculture: By reducing the carbon emission intensity of ammonia, which is used for manufacturing fertilisers, carbon emission intensity of agriculture will be cut down.
Issues in developing Green Ammonia sector in India:
Government Steps for promotion of Green Ammonia in India
- National Green Hydrogen Energy Mission: Launched and implemented by the Ministry of New and Renewable Energy. Targets under the Mission are:
- Green Ammonia Policy
- Launched by Ministry of Power
- Green Hydrogen / Ammonia manufacturers may purchase renewable power from the power exchange or set up renewable energy capacity themselves or through any other developer, anywhere.
- Open access will be granted within 15 days of receipt of application.
- The Green Hydrogen / Ammonia manufacturer can bank his unconsumed renewable power, up to 30 days, with a distribution company and take it back when required.
- Waiver of inter-state transmission charges for a period of 25 years will be allowed to the manufacturers of Green Hydrogen and Green Ammonia for the projects commissioned before 30th June 2025.
- The manufacturers of Green Hydrogen / Ammonia and the renewable energy plant shall be given connectivity to the grid on priority basis to avoid any procedural delays.
- To ensure ease of doing business a single portal for carrying out all the activities including statutory clearances in a time bound manner will be set up by MNRE.
- Manufacturers of Green Hydrogen / Green Ammonia shall be allowed to set up bunkers near Ports for storage of Green Ammonia for export / use by shipping. The land for the storage for this purpose shall be provided by the respective Port Authorities at applicable charges.