60,000 Tonnes a Year — The Green Ammonia Contract Set to Transform MBAPL (Madhya Bharat Agro Products Limited)

Oriana Power Limited has emerged as the successful bidder in a major government-backed green ammonia auction, winning the contract to supply 60,000 metric tonnes per annum of green ammonia to Madhya Bharat Agro Products Limited (MBAPL) for its plant in Sagar, Madhya Pradesh. The contract, awarded through the Solar Energy Corporation of India’s (SECI) Strategic Interventions for Green Hydrogen Transition (SIGHT) program, is set to span a decade, marking a significant milestone in India’s green energy transition and sustainable fertilizer production.

 

Key Highlights of the Green Ammonia Supply Contract:

Oriana Power quoted a competitive tariff of ₹52.25 per kilogram (approximately $0.59/kg), securing the full capacity of 60,000 metric tonnes per year under the auction held in August 2025. This price reflects a substantial cost breakthrough in India’s green hydrogen economy.

 

The decade-long agreement requires Oriana Power to establish dedicated production facilities, secure all necessary regulatory approvals, and ensure continuous supply, storage, and delivery of green ammonia to MBAPL’s Sagar plant in Madhya Pradesh.

 

This contract forms part of SECI’s broader procurement initiative aggregating a total of 724,000 metric tonnes per annum of green ammonia distributed across 13 fertilizer plants nationwide, reinforcing India’s commitment to decarbonize its fertilizer sector and reduce reliance on grey ammonia derived from fossil fuels.

 

Green ammonia produced under this contract will use renewable energy, which can be sourced from co-located or remotely located renewable projects, including solar or wind, or procured through power exchanges—emphasizing the sustainability dimension.

 

Oriana Power’s success follows closely on previous SECI auctions where companies like NTPC Renewable Energy and ACME Cleantech Solutions secured contracts for supplying green ammonia to other fertilizer manufacturing units, showcasing a growing competitive and collaborative ecosystem supporting India’s National Green Hydrogen Mission.

 

India consumes nearly 17-19 million tonnes of ammonia annually, with more than 50% of its hydrogen needs tied to fertilizer production. The shift toward green ammonia aligns with national goals to minimize carbon emissions and promote sustainable agriculture inputs.

 

Operational and Strategic Significance:

The alliance between Oriana Power and Madhya Bharat Agro Products is a strategic step toward integrating clean energy solutions in fertilizer manufacturing, reducing the carbon footprint of critical industrial inputs. Oriana Power, established in 2013 with a focus on renewable energy generation and sustainable infrastructure, will now expand its footprint into the green hydrogen and ammonia sector, contributing to a cleaner energy future.

 

The planned infrastructure will ensure at least 90% annual supply reliability under the contract, and Oriana Power is prohibited from engaging in trading or arbitrage related to the green ammonia destined for MBAPL. This guarantees a focused and dependable supply chain for the agro-product unit.

 

Broader Market Context and Environmental Impact:

India’s concerted push to bolster green hydrogen and ammonia production is bolstered by government incentives under the National Green Hydrogen Mission, which includes Production Linked Incentives (PLI) offering financial support to producers. The program seeks to accelerate clean hydrogen adoption for domestic consumption and export readiness, with an eye on lowering traditional greenhouse gas emissions associated with conventional ammonia production.

 

This transition significantly reduces carbon dioxide emissions per kilogram of ammonia produced—green ammonia emitting less than 2 kg of CO₂ versus up to 12 kg associated with grey ammonia generated from natural gas.

 

The green ammonia supply to MBAPL is thus a flagship project reflecting the country’s vision for industry decarbonization, energy security, and sustainable growth.

 

Future Outlook:

The 10-year contract reinforces Oriana Power’s position as a key player in India’s renewable energy landscape and green hydrogen economy. With a strong order book valued over Rs 2,500 crore, the company is poised for growth through innovative, low-carbon solutions in collaboration with industrial partners like Madhya Bharat Agro Products.

 

MBAPL, a leading player in fertilizer manufacturing, leverages this green ammonia supply to enhance the sustainability profile of its operations, supporting agricultural productivity with lower environmental impact inputs.

 

Conclusion:

Oriana Power’s winning bid to supply 60,000 tonnes per annum of green ammonia to Madhya Bharat Agro Products for 10 years at ₹52.25/kg represents a significant advancement in India’s clean energy and fertilizer sectors. This partnership under SECI’s umbrella program underscores the nation’s drive toward sustainable industrial growth, reduced carbon emissions, and energy independence.

 

As India accelerates its clean energy transition efforts, this contract showcases how innovative renewable energy companies and critical industrial players are collaborating to build a greener, more resilient economy.

 

Source: Solar Energy Corporation of India (SECI) announcements, Economic Times, Mercom India, Angel One, Renewable Watch